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Pricing Practices: Presented by

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Mahima Gotekar
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124 views12 pages

Pricing Practices: Presented by

Uploaded by

Mahima Gotekar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Pricing Practices

Presented by :
Sneha Bhor
Mahima Gotekar
Babli Yadav
Meaning and definition :
Price is an art of translating into quantitative terms
the value of the product to consumer at a point in
time.

Pricing is one of the most important elements of


the marketing, as it is the only factor which
generates a turnover for the organization.
Contd
… It can be defined as “Activities aimed at finding a
product’s
optimum price, typically including overall marketing
objectives, consumer demand, product attributes,
competitors’ pricing, and market and economic trends.”
Pricing is the process of determining what a company
will receive in exchange for its product or service.
A business can use variety of pricing strategies when
selling a product or service.
Purpose of Pricing Strategy :

❑ Product
❑ Price
❑ Promotion
❑ Place
Product
: Any issues for selling the product this would include the
packaging and all other connection in selling the product.

Price
: We need to ensure that we generate adequate income to
cover our cost & to make a healthy profit. Price goals
should achieve - positioning, marketing mix,
willingness & ability to pay.
Promotion
: We would also need to make the plan what other
promotional activity would take place in order to tell
our customer about our product which will attract them
to buy.

Place
: You have to decide the choice of the place through
which channel you distribute the product or service.
ADIDAS
❏ As one of the leading organizations in the sport
equipment industry and its reputation for quality and
design.
❏ It is only influenced by competitive pricing and the
customers perceived value for their money.
❏ The production of most of Adidas products take place
with cheap labour and low overall costs.
E.g. Production cost is $76 but the product at price
$350.
Types of Price Strategies :
❏ Skimming / Penetration Pricing Strategy

❏ Competitor-Oriented Pricing Strategy

❏ Marketing-Oriented Pricing Strategy

❏ Cost-Oriented Pricing Strategy


Contd
… Another important Aspect when it comes to pricing is that
Adidas uses price skimming, which is a strategy that first
sets a high price for a product and lowers the price over
time.
This mainly applies to new products in the market and
charges the highest price that customers would pay for the
desired product.
PUMA
❏ Just as Adidas, Puma is producing its
products in countries with cheaper
labour and lower overall costs. Puma
also use price skimming strategy.
❏ Puma is more influenced by his
competitor like NIKE & ADIDAS.
❏ Puma sets its price is in more
affordable level.

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