DEVELOPING PRICING STRATEGIES AND PROGRAMS Presentation by Srujan Da
Geographical Pricing:How to price to different customers at different locations?
Counter-trade(15~20%): Many buyers want to offer other items in exchange.
Forms of World Trade:
• Barter• Compensation Deal: some percentage in cash, rest in products• Buyback arrangement: accept products manufactured with
supplied goods as partial payments• Offset: receive full payment in cash but agree to spend some amount in the country
Price, Discounts and Allowances:If DISCOUNTING becomes the NORM, product value can be UNDERMINED
Some product categories self-destruct by always being on sale.
It can be a Mistake for strong, distinctive brand to plunge into price-discounting
Promotional Pricing:
1. Loss-leader pricing2. Special event pricing3. Special customer pricing4. Cash rebates5. Low-interest financing6. Longer payment terms7. Warranties and
service contracts8. Psychological discounting
Differential Pricing:Price discrimination: Company sells a product at two or more places that do not reflect a proportional difference in costs
1. Customer segment pricing: different customers pay different prices for same product
2. Product-form pricing: different versions priced differently, disproportionate to costs
3. Image pricing: charge different prices based on image-differences
4. Channel pricing: price change with change in supply-channel
5. Location pricing: different prices at different Locations.
6. Time pricing: prices varied by season.
7. Yield pricing: discounted early prices, higher late prices
DISCLAIMER
Created by Srujan Dasari, IIT Kharagpur,
during an internship by
Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com