How should a company adapt prices to meet varying circumstances and opportunities

ADAPTING THE PRICE

PRICE ADAPTION STRATEGIES

•GEOGRAPHICAL PRICING.

•PRICE DISCOUNTS AND ALLOWANCES.

•PROMOTIONAL PRICING.

•DIFFERENTIATED PRICING.

GEOGRAPHICAL PRICING

CASH , COUNTERTRADE , BARTER

COUNTERTRADE FEATURES:-

1.BARTER

GEOGRAPHICAL PRICING

2.COMPENSATION DEAL

GEOGRAPHICAL PRICING

2.BUYBACK ARRANGEMENT

GEOGRAPHICAL PRICING

4.OFFSET

OFFSET DEAL

GEOGRAPHICAL PRICING

PRICE DISCOUNT AND ALLOWANCES

•EARLY PAYMENT•VOLUME PURCHASES•OFF SEASON BUYING

DISCOUNT PRICING IS THE MODUS OPERANDI OF COMPANIES PRODUCTS AND SERVICES

FEATURES:-1.DISCOUNT – 2/10 , NET 30•ABOVE EXAMPLE IMPLIES PAYMENT DUE WITHIN 30 DAYS•DEDUCT 2% BY PAYING WITHIN 10 DAYS

PRICE DISCOUNT AND ALLOWANCES

QUANTITY DISCOUNT-EXAMPLE-”$10 PER UNIT FOR FEWER THAN 100 UNITS , $9 PER UNIT FOR 100 OR MORE UNITS”

PRICE DISCOUNT AND ALLOWANCES

FUNCTIONAL DISCOUNT ( TRADE DISCOUNT )-•SELLING•STORING•RECORD KEEPING

PRICE DISCOUNT AND ALLOWANCES

SEASONAL DISCOUNT - ALLOWANCE – ( OFF SEASON DISCOUNT ) ( TRADE IN ALLOWANCE )

PRICE DISCOUNT AND ALLOWANCES

PROMOTIONAL PRICING

LOSS LEADER PRICINGSPECIAL EVENT PRICING

SPECIAL CUSTOMER PRICING

• CASH REBATES

• LOW INTEREST FINANCING

• LONGER PAYMENT TERMS

PROMOTIONAL PRICING

• WARRANTIES AND SERVICE CONTRACTS • PSYCHOLOGICAL DISCOUNTING

PROMOTIONAL PRICING

DIFFERENTIATED PRICING

PRICE DISCRIMINATION –

1.FIRST-DEGREE ( DEMAND )

2.SECOND - DEGREE ( VOLUME )

3.TIERED PRICING - PAYING MORE WITH HIGHER USAGE

4.THIRD DEGREE –

•CUSTOMER SEGMENT PRICING

•PRODUCT FORM PRICING

•IMAGE PRICING

PROMOTIONAL PRICING

4.THIRD DEGREE –

•CHANNEL PRICING

•LOCATION PRICING

•TIME PRICING

PROMOTIONAL PRICING

YIELD MANAGEMENT : YIELD PRICING

PROMOTIONAL PRICING

SUMMARY

COMPANIES ADOPT A PRICING STRUCTURE THAT REFLECTS-

• GEOGRAPHICAL DEMAND AND COSTS• MARKET SEGMENT REQUIREMENTS• PURCHASING TIME• ORDER LEVELS

PRICE ADAPTATION STRATEGIES-

• GEOGRAPHICAL PRICING• PRICE DISCOUNTS AND ALLOWANCES• DISCRIMINATORY PRICING

AKASH RANJAN PRADHANNIT ROURKELADURING A MARKETING INTERNSHIP BY PROF.SAMEER MATHUR IIM LUCKNOWWWW.IIMINTERNSHIP.COM

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