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PRICING STRATEGIES

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by

nuRul AzRa

on 23 May 2014

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Transcript of PRICING STRATEGIES

PRICING STRATEGIES
design by Dóri Sirály for Prezi
MAJOR
PRICING STRATEGIES
PRICING
"AROMATISKAA"
Price is the amount of money charged for a product or service the sum of the values that customers exchange for the
benefits
or
having
or
using
the product or service.
CUSTOMER

VALUE BASED

PRICING
GOOD VALUE PRICING
VALUE ADDED PRICING
Our group only use
GOOD VALUE PRICING

Offering the right combination af
quality
&
good service
at a fair price.

We use
everyday low pricing (ELDP)
, everyday low price with few or no temporary price discounts.
TYPE OF COST
FIXED COST
cost that do not vary with production or sales level.
example
: we must pay each month's bills for rent
VARIABLE COST
cost that vary directly with the level of production.
example
: banana, flour
TOTAL COST
sum of the fixed & variable costs for any given level of production.
COMPETITION
- BASED PRICING
setting prices based on
competition's strategies
,
costs
,
prices
, &
market offerings.
customer will base their judgement of our product's value on the prices that competitors charge for similar product
For example
we give product that have greater value such as features & taste to charge a higher price
INTERNAL & EXTERNAL CONSIDERATION AFFECTING PRICE DECISION
OVERALL MARKETING STRATEGY, OBJECTIVE & MIX
we set price because it may
play an important role
in helping to accomplish company objectives at many level.
we want to
attract new customers
or
profitably retain
existing ones.
to
prevent competition
from entering the market or set prices at competitor's level.
ORGANIZATIONAL CONSIDERATION
top management will set the price for our product.
THE MARKET &
DEMAND
MONOPOLISTIC COMPETITION

many buyers &sellers who
trade over a range of prices
rather than a single market price.
will have range of price to the sellers
one product are
inelastic demand
because it is a convenience product which the food that is needed by everyone.
THE ECONOMY
have
strong impact
on the firm's pricing strategies
we will
give discount
to whom buy our product in a large amount
OTHER EXTERNAL
FACTOR
we must consider on government factor that will
influence our price
such as government tax
we also considered on
social concerned

NEW PRODUCT PRICING STRATEGIES
market slimming pricing
market penetration pricing
For our product
"Pisang Goreng Cheese"
we use
MARKET PENETRATION PRICING

MARKET PENETRATION PRICING
is
setting a low price for our product
'Pisang Goreng Cheese'
to attract
a large number of buyers and a
large market share.
PRODUCT MIX PRICING STRATEGIES
product line pricing
optional product pricing
captive product pricing
by- product pricing
product bundle pricing
For this strategies, we only used
2 strategy
which is suitable to apply to our product
"Pisang Goreng Cheese".
PRODUCT LINE PRICING
With this strategy, we
setting the price steps
between various products in a product line that sales the same product like our company
"Pisang Goreng Cheese"
based on cost difference between the products, customer evaluations of different features , & competitor's prices.
PRODUCT BUNDLE PRICING
For this strategy, we could
combining several product offering
the bundle at a reduce price.
For example
use sell one box for RM5 and 3 box for RM13.
Discount and
allowance pricing
segmented pricing
psychological pricing
promotional pricing
geographical pricing
PRICE ADJUSTMENT STRATEGIES
dynamic pricing
international pricing
we use
SEGMENTATION PRICING
to sell our product
"Pisang Goreng Cheese"
at two or more prices, even though the difference in price is not based on difference costs.
For this strategy there
are segment
PRODUCT- FORM PRICING
That means different version of the product are priced differently but not according to differences in their costs.
Ex;
1 box we sells RM5 but for 3 boxs we sells RM13.
VOCATION BASED PRICING
For our products this segment is not suitable to apply which is we need to put a different price to different people.
Ex
; There are student price 8 adult price.
We use this strategy by
temporarily pricing products
below the list price and sometimes even below costs, to increase short-run sales .
We apply this strategy with
advertise our product
by using pamphlets and distribute to people or neighborhood areas that are near to our selling place.
PROMOTIONAL PRICING
PRICE CHANGE
After developing their pricing structures and strategies, companies often face situations in which they must initiate price changes or respond to price change by competitors
Initiating Price Change

Initiating price cuts
Several situations may lead our organization consider cutting our products price.
One such circumstance capacity. Another is falling demand in the face of strong price competition or a weakened economy.
Responding to price change
This strategy shows the ways our company might asses and respond to competitors price cut
Price competitors is a core element of our free-market economy.
These include potentially damaging pricing practices within a given level of the channel (price-fixing and predatory pricing) and across level of the channel (retail price maintenance,discriminatory pricing and deceptive pricing)
Public Policy and Marketing
Our organization set prices without talking to our competitors .Otherwise suspected.
We are also prohibited from using predatory pricing, means, selling our product below cost with the intention as punishing a competitor or gaining higher long-run profits by putting competitors out of business.
PRICING
WITHIN CHANNEL LEVEL
If our product have a higher demand and gets opportunity to open many branches in Malaysia, we have to prevent unfair price discrimination by ensuring that we offer, the same price terms to customers at a given level of trade.
We also can discriminate in its pricing if the seller manufactures different qualities of our product "Pisang Goreng Cheese" for different retailers.
PRICING
ACROSS CHANNEL LEVEL
NUR SYAHIRA BTE MOHD AMIN
2013219242
INTAN BAIZURA BTE MOHD SALLEH
2013249008
2013499438
NUR HIDAYATUL AIN BTE SUHAIMI
2013839184
NURUL SYAFIQAH AZRA BTE MOHD NAZRI
2013434568
NUR ATIKAH BTE JAMALUDDIN
PISANG GORENG
CHEESE
Initiating price increase
A major factor in price increases is cost inflation.
If this situation happen like our raw materials; flour,salt,chocolate and other price increase it might effect to our price selling.
When raising prices, our company must avoid being perceived as a price gouger.
We have to maintain a sense of fairness surrounding any price increase. Price increases should be supported by company communication telling customers why prices are increased.
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