Dr.

Sanjeev Verma

12/6/2014

Changing Pricing Environment- Get Instant Price Comparisons from thousands of

vendors

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Changing Pricing Environment- Name the Price and have it met

12/6/2014

Changing Pricing Environment- Get Products Free

12/6/2014

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Reference Prices

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Price endings

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Price cues

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Select the price objective

Determine demand
Estimate costs
Analyze competitor price mix

Select pricing method

Select final price
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Survival
Maximum current
profit
Maximum market
share
Maximum market
skimming
Product-quality
leadership

Price Sensitivity

Estimating
Demand Curves
Price Elasticity
of Demand

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Types of Costs
Accumulated
Production
Activity-Based
Cost Accounting
Target Costing
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Fixed costs
Variable costs
Total costs
Average cost
Cost at different
levels of production

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Markup pricing
Target-return pricing
Perceived-value pricing
Value pricing
Going-rate pricing
Auction-type pricing

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Impact of other
marketing activities
Company pricing
policies
Gain-and-risk sharing
pricing
Impact of price on other
parties

Geographical Pricing
Discounts/Allowances
Promotional Pricing

Differentiated Pricing

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Countertrade
Barter
Compensation deal
Buyback arrangement
Offset

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Discounts/ Allowances
Cash discount
Quantity discount
Functional discount
Seasonal discount
Allowance

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Loss-leader pricing
Special-event pricing
Cash rebates
Low-interest financing
Longer payment terms
Warranties and service
contracts
Psychological
discounting

Customer-segment
pricing
Product-form pricing
Image pricing
Channel pricing
Location pricing
Time pricing
Yield pricing

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Delayed quotation pricing

Escalator clauses
Unbundling

Reduction of discounts

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Maintain price
Maintain price and add value
Reduce price
Increase price and improve quality
Launch a low-price fighter line