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13 views

New Text Document

pricing

Uploaded by

saurav
Copyright
© © All Rights Reserved
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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Product Mix Pricing: In pricing a product, the marketer must also accounts for profitability of produ ct mix.

Product mix pricing is a difficult task because each producthas differen t demand, cost and competition. Product mix pricing may take severalforms: a)Product-Line Pricing: Companies normally develop product lines rather thansingle products and develop different price levels, for e.g, three price levels $200,$350 and $500 for men's suits, the customers will associate low, average and highquality with the three price levels (b)Optional Features Pricing: It refers to the pricing of additional features with themain products, e.g, pric ing of air conditioners, personal computers, automobiles,etc. (c)Captive-Product Pricing: Fr example, manufacturers of razors and cameras oftenprice them low and set high mark-ups on razor blades and camera film rolls. (d)Two-Part Pricing: It consists of a fixed charge and a variable charge based onconsumption, e.g, pr icing in telephone billings, electricity, etc. (e)By-Product Pricing: It refers to pricing of by-products for the consumers seekingto purchase the byproducts. (f)Product-Bundling Pricing: Sellers often bundle their products and features at aset price.

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