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DEVELOPING PRICING STRATEGIES AND PROGRAMS
Presentation by Srujan Dasari
WHEN
SHOULD A COMPANY INITIATE
A PRICE-CHANGE ?
Initiating Price Cuts
EXCESS PLANT CAPACITY
Firm needs additional Business
It cannot generate it through increased sales effort, product improvement and other measures
POSSIBLE TRAPS
Low-Quality trap
Fragile Market trap
Shallow-pockets
Trap
Price-war trap
Initiating Price Increases
Generally, Consumers PREFER SMALL INCREASES on a regular basis to SHARP INCREASE
CAUSES:
Cost Inflatio
n
Anticipatory Pric
ingOve
r D
eman
d
Delayed Quotation Pricing
Escalator Clauses
Reduction of Discounts
Unbundling
DISCLAIMER
Created by Srujan Dasari, IIT Kharagpur,
during an internship by
Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com