Concept and definition of pricing

Pricing

1. GROUP 1 -KARTEEK(073) -DINESH(075) -SRAVYA(076) -KAMALAJA(077) -GULSHAN(078) -HABEEB(079) Concept and Definition of Price, Pricing, Role and Function of Pricing -GROUP1 KARTEEK(073) DINESH(075) SRAVYA(076) KAMALAJA(077) GULSHAN(078) HABEEB(079)

2. Price: Concept and Definition Price has multiple interpretations and definitions one of it that encompasses the concept of price is as follows: “Price is amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service” “ Price is the value placed on what is exchanged. Something of value is exchanged for satisfaction and utility, includes tangible (functional) and intangible (prestige) factors .”

3. Price: Concept and Definition As a concept “ Price is that which is given up in an exchange to acquire a product and service ” “It is the only element of a generic marketing that relates to revenue all other parameters relate to costs” Total Revenue = Price * Quantity Profits = Total Revenue - Total Cost

4. Pricing: Price Setting; 6 Step Process Six step process in Pricing

5. Pricing Pricing  is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. A firm sets a price for the first time when It develops a new product Introduces regular product into a new distribution channel or geographical area

6. Pricing A company must set its price in relation to the value delivered and perceived by the customer

7. Pricing A company must set its price in relation to the value delivered and perceived by the customer

8. Price: Price Setting These are price setting methods considering the motive of the company “cost-based” is product driven; a summation of costs (Soaps, Daily Bread) “Value-based” is customer perception driven (Mobile Phones, Apparel)

9. Signal To The Buyer Instrument of Competition  Improving Financial Performance Marketing Program Considerations Price: Role and Function

10. Direct way of Communication Basis of Comparison between brands Positioning the brand Signal to the Buyer High Price Positioned as high quality, technologically advanced product Low Price product- positioned as affordable

11. Low Price product- positioned as affordable smart phone High Price Positioned as a Luxury Car Low Price product High Price product

12. Quickly attack Competitors Position your business away from Direct Competition Instrument of Competition

13. Impact on Business Financial Statements Ex:Maggi Improving Financial Performance Maggie had to face litigation . It resulted company, net loss in 2 quarters. Company launched the product with an increase of INR 2

14. Substitution for advertising and sales promotion Incentive to channel members Marketing Program Considerations

15. GROUP 1 -KARTEEK(073) -DINESH(075) -SRAVYA(076) -KAMALAJA(077) -GULSHAN(078) -HABEEB(079) THANK YOU