Industrial marketing presentation

Price : The amount of money that is charged for something of value. Prices are how much someone is willing to pay. Price is called differently
SERVICE university
landlord banks transportation highway doctor ,lawyer employee

PRICE PAYMENT tuition

rent interest fares toll fee wage

Profit Oriented

Target Return Maximize Profits Dollar or Unit Sales Growth Growth in Market Share Meeting Competition Nonprice Competition

Pricing Objectives

Sales Oriented

Status Quo Oriented

Target return sets a specific level of profit as an objective. Profit maximization to get as much profit as possible.

Sales-oriented objective: to get some level of unit sales, dollar sales, or share of market, without referring to profit.
Sales growth for companies pioneering

innovative products or technologies to develop markets. Growth in market share to enjoy better economies of scale (more profits, lower costs).

Status quo: Dont rock the pricing boat.

To stabilize prices, or meet competition, or even avoid competition. Non-price competition: aggressive action on one or more of the Ps other than price.

Demand
Costs Competition Technology

Skimming price strategy

Market Penetration pricing strategy Price Flexibility Strategy

Skimming Pricing
Price Initial skimming price Second price Final price Sell at high price before reducing to next price level and repeat

Quantity

Highly price sensitivity. Cost of production and distribution fall with accumulated output. Market share is major goal rather then short term high profit High sale of complementary products

One-price policy used in mass selling

The same price to all customers who purchase products under essentially the same conditions and quantities

Flexible pricing (e.g., in channels, business markets,

expensive consumer shopping products) used in personal selling Offering the same product and quantities to different customers at different prices.

Cost plus pricing (Set the price at your production cost, including
both cost of goods and fixed costs at your current volume, plus a certain profit margin)

Target return pricing (Set your price to achieve a target return-oninvestment (ROI) ).

Value based pricing (Price your product based on the value it

creates for the customer. This is usually the most profitable form of pricing, if you can achieve it. )

Psychological pricing (Ultimately, you must take into

consideration the consumer's perception of your price, figuring things like: Positioning Fair pricing