Adapting The Price
Ankeita MallS.G.S.I.T.S.
How Should a Company adapt Prices to meet varying circumstances and opportunities?
Factors affecting Price Change
Geographical Demand and costs
Market Segment Requirements
Purchase Timing
Order Levels
Delivery Frequency
Guarantees
Service Contracts
Other Factors
Geographical Pricing Company decides
how to price its products to different customers in different locations and countries
Price Discounts and Allowances
Companies adjust their list price and give discounts for early payment, volume purchase and off season buying
Discounts
Quantity Discounts
Seasonal Discounts
Promoting Pricing
Several Pricing techniques to stimulate early purchase
Loss-Leader Pricing (Dropping Price on well known brands)
Special Event Pricing
Cash Rebates
Low Interest Financing
Longer Payment Terms
Differentiated Pricing
Companies adjust their basic price to accommodate differences in customers, products, locations and so on
Customersegment Pricing
Image Pricing (Pricing the
same product at two different levels based on mange differences)
Time Pricing Channel
Pricing
RECAP• Adapting the Price• Factors affecting Price change• Geographical Pricing• Price Discounts and Allowances• Promotional Pricing• Differentiated Pricing• Price Discrimination
Created by ANKEITA MALL, S.G.S.I.T.S. , during an internship by Prof. Sameer Mathur, IIM Lucknow. www.IIMInternship.com
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