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Sell The Price and Not Through Price

This document discusses strategies for pricing a product based on its value rather than just price. It recommends focusing on differentiating the product by highlighting the benefits it provides customers, such as lower costs, better quality, or solutions to their needs. Various techniques are presented for differentiating a product, such as selecting a clear value proposition and positioning the product in a unique way. The document also discusses how changing price affects customer behavior and gives tips for determining an optimal price point based on brand share and profit calculations. The key findings are that a product should solve customer problems and needs, and its perceived value should be greater than alternatives.

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Rajavali Dudekula
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20 views

Sell The Price and Not Through Price

This document discusses strategies for pricing a product based on its value rather than just price. It recommends focusing on differentiating the product by highlighting the benefits it provides customers, such as lower costs, better quality, or solutions to their needs. Various techniques are presented for differentiating a product, such as selecting a clear value proposition and positioning the product in a unique way. The document also discusses how changing price affects customer behavior and gives tips for determining an optimal price point based on brand share and profit calculations. The key findings are that a product should solve customer problems and needs, and its perceived value should be greater than alternatives.

Uploaded by

Rajavali Dudekula
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SELL THE PRICE AND NOT

THROUGH PRICE

BY
GROUP-3
D.RAJAVALI (09135)
RAHUL MITTAL(09133)
M. ROOPAK(09139)
SANDEEP KUMAR(09140)
INTRODUCTION
 PRICING
 OBJECTIVE OF PRICING
 SETTING OF PRICES
 PRICING THEORIES
 FACTORS INFLUENCING THE PRICING
DECISIONS.
Value Based marketing
 Comparing product in terms of cost in use.

 Comparing products on the basis of performance


differences.

 The customer value map

 Product appraisal

 The value-pricing chart.


Selling on value…..Not on price

 Quality

 Delivery

 Service
Techniques for differentiation
 Don’t try to be all things to all people
› A co. should select a point of differentiation and stick
with it.
› Establish a value proposition.
 Dare to be different
› Creative in marketing materials.
› Positioning in an unique & attention getting way.
 Sell solutions, NOT products.

Your Feature/Function Customer Benefit/Value

Lasts longer than the competitors Lower replacement or maintenance costs

Zero PPM Reduced incoming inspection costs

costs High quality/ISO certifications Ability to extend their customer warranty

Engineering/design assistance Reduced human resource needs

Guaranteed delivery Faster time-to-market


How Changing Price Effects
Customer’s Behaviour
 The degree to which price differences affect
customers’ choices.

 Determining the optimal price.


› Brand Share = base share – share loss per dollar increase x
price gap

› Profit = (category volume x (a - b x (selling price –


competitor price))) x (selling price - cost).
Key Findings
 Our product should be in such a way it should
provide solution to the customers. Like the product
we offer should satisfy their needs and wants.
 If you price your product above what it is worth,
you will have difficulty attracting customers. If you
price your product below its cost, you lose money.
 The value you provide to the customers should be
in such a way that it should be greater than the
value provided by the alternatives i,e. Vf > Va.
CONCLUSION
THANK U

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