setting of price
TRANSCRIPT
![Page 1: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/1.jpg)
Setting the price
Presented by :Neha koul -Shumali -Vasudha dogra - 67Vidhu arora - 68Arjit gupta - 69Anchal gupta - 70Ridham mahajan -71
![Page 2: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/2.jpg)
What is price ? Price is the one element of the marketing mix that produces revenue
The amount paid for some goods and services.
Pricing is the process whereby a business sets the price at which it will sell its products and services.
![Page 3: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/3.jpg)
Steps in setting price
![Page 4: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/4.jpg)
Step 1: Selecting the Pricing Objective
Survival
Maximum current profit
Maximum market share
Maximum market skimming
Product-quality leadership
Clearer a firms’ objectives, easier it is to set the price.There are five major objective are :
![Page 5: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/5.jpg)
Step 2: Determining Demand
Price
demand
Sensitive : regular items Less sensitive: no substitute, Addiction, infrequently used items
Price
Sensitivity
Surveys Price experiments Statistical analysis
Estimating
demand curve
Elastic demandInelastic demand
Price
elasticity of demand
![Page 6: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/6.jpg)
Step 3: Estimating Costs
Fixed Cost
Variable Cost
Total Cost
Price which covers at least total cost of production at the given level of production is selected.
![Page 7: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/7.jpg)
Step 4 :Analyze competitors’ costs, prices and offers
![Page 8: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/8.jpg)
Offers
Less features
Subtract that value from their own price
More features
Add value to the competitors price
![Page 9: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/9.jpg)
Step 5: Selecting a Pricing Method
Consideration in price setting : 3C’s
• costs set floor to the price • competitors prices and substitute prices provide an orienting
point.• customers’ assessment of unique features establishes ceiling price.
Price setting methods :
• Markup pricing• Target-return pricing• Perceived-value pricing• Value pricing• Everyday low pricing• Going rate pricing• Auction-type pricing
![Page 10: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/10.jpg)
Step 6: Selecting The Final Price
Pricing methods narrow the range from which company must select its final price.
Too high few
buyers
Priced right ???
Too lowToo many buyers
![Page 11: setting of price](https://reader033.vdocument.in/reader033/viewer/2022052418/58f9b8791a28abf23b8b4597/html5/thumbnails/11.jpg)