Price Adaptation-Geographical pricing PPT

Pricing Adaptation with Respect to Geographical Pricing
Example to relate with Geographical Price

1. SUVADEEP CHATTERJEE PGDM-MARKETING FINANCE PRESENTED BY : Pricing Management-Assignment Price Adaptation- Geographical Pricing

2. Price Adaptation Price adaptation is the ability of a business to change its pricing models to suit different geographic areas, consumer demands and prevailing incomes . Marketing plays a significant role in price adaptation because pricing strategy is one of the four main components in determining product positioning . Companies Usually do not set a single price but rather develop a pricing structure.

3. Price Adaptation Strategy

4. Geographical Pricing Adjusting an item Sales price based on the buyer’s Location. Sometime the difference in sales price is based on the cost to ship the item to that location or what the people are willing to pay. Geographic pricing relates to how a business chooses to price its products within different regions . In selecting its product prices for different regions, a business also adapts its marketing strategies to fit those pricing models. For example, a company may increase its product prices in areas where median income among consumers is high, and reduce its prices in areas where median income is low.

5. Barter Direct Exchange of goods Geographical Pricing Receives payment in cash but agrees to spend some money in the product of the country

6. Geographical Pricing Strategy In Geographical Pricing, a Seller must consider the costs of shipping goods to the buyer. These Cost grow in importance, as the freight becomes a larger part of total variable costs. Pricing policies may be established whereby the buyer pays all the freight expenses, the seller beers the entire cost, or seller or buyer share this expenses.

7. Geographical Pricing-Types FOB-origin Pricing : Customer pays the freight from the factory to the destination. Uniform-delivered pricing: Company charges the same price plus freight to all customers. Zone pricing: C ustomers in different zone pay for different prices . Company sets up two or more zones. The more distant Zone the higher the price. Basing-point pricing: Seller selects some city as a basing point & charges all customers the freight cost from that city to the customer. Freight-absorption pricing: Sellers absorbs all or part of the freight charges in order to get the desired business.

8. Geographical Pricing-Example