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MM Module 5

The document discusses pricing strategies and factors that influence pricing decisions. It covers value-based, cost-based, and market-based pricing, as well as internal and external factors that affect pricing. The significance of pricing and objectives of pricing are also examined.

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manjunath
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14 views

MM Module 5

The document discusses pricing strategies and factors that influence pricing decisions. It covers value-based, cost-based, and market-based pricing, as well as internal and external factors that affect pricing. The significance of pricing and objectives of pricing are also examined.

Uploaded by

manjunath
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Module 5

Module -5 Pricing , Marketing Channels


• Pricing decisions: Introduction to pricing,
Significance of pricing, factor influencing
pricing (Internal factor and External factor),
objectives, Pricing Strategies-Value based,
Cost based, Market based, Competitor based,
Pricing Procedure.
• Pricing decisions: Significance of pricing,
factor influencing pricing (Internal factor and
External factor), objectives, Pricing Strategies-
Value based, Cost based, Market based,
Competitor based, Pricing Procedure.
Price
Significance of pricing
• Price is the amount of money charged for a
product or a service.
• Price is the sum of all the values that
customers give up to gain the benefits of
having or using a product or service.
• Only element in marketing mix that brings in
the revenue
• Price communicates the value positioning of
the product
• Price has a psychological impact on
consumers and hence marketers can use it
•
symbolically.
https://theintactone.com/2019/09/13/mm-u4-topic-2-factors-influencing-pricing/
Price and Quality Matrix
Factors Influencing Pricing

Internal Factors • Demand


• Top level mgmt • Competition
• Marketing mix • Buyers behavior
• Degree of product • Govt, Economical condition

differentiation • Ethical considerations


• Costs, Brand Image • Seasonal effect
• Objectives, Market share
• PLC, Class of product
External Factors
Objectives of Pricing…
• To increase the profit.
• To increase Market Share.
• To Stabilize the Price.
• To Recover Cost.
• Penetration Objective.
• To Maintain the Product Image.
• Achieving a Target Return.
• Increasing the sales volume.
• Meeting the Competition.
• Determining prices according to consumer’s
paying capacity.
Value Based Pricing
Starbucks
• Value-based pricing is the method of setting a
price by which a company calculates and tries
to earn the differentiated worth of its
product for a particular customer segment
when compared to its competitor.
• Meet Me At Starbucks.
Value Based Pricing
Cost Based Pricing
Market Based Pricing
• Market-based strategic pricing involves a
process in which product prices are fixed
after studying the costs of similar products
available in the market.
• Depending upon what a product has to offer,
more or less than the competitive product,
businesses decide the prices for their products
Pricing Procedure

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