Fmcg Pricing Srtategies
Thesis Framework On Pricing Strategies Under different market conditions
BY:- Nishant Srivastava 2007MBA30 UNDER GUIDANCE OF:- DR. DEEPALI SINGH (ASSOCIATE PROFESSOR) Department of Information Technology ABV-IIITM
Introduction
What is Pricing ?
• Pricing is one of the four major elements of the marketing mix.
• Pricing is an important strategic issue because it is related to product positioning.
• Pricing affects other marketing mix elements such as product features, channel decisions, and promotion.
• Pricing is an approach in which marketers put a value tag on a particular product.
Pricing Pricing Strategy
• Pricing can be done during the various stages of the product lifecycle. These are called Pricing Strategies
introduction decline growth maturity
Pricing Methods
To set the specific price level that achieves their pricing objectives, managers may make use of several pricing methods. These methods include:
• Cost-plus pricing - set the price at the production cost plus a certain profit margin.
• Target return pricing - set the price to achieve a target return-on-investment.
• Value-based pricing - base the price on the effective value to the customer relative to alternative products.
• Psychological pricing - base the price on factors such as signals of product quality, popular price points, and what the consumer perceives to be fair.
Pricing Strategies Matrix
• Premium Pricing. Use a high price where there is a uniqueness about the product or service. This approach is used where a
BY:- Nishant Srivastava 2007MBA30 UNDER GUIDANCE OF:- DR. DEEPALI SINGH (ASSOCIATE PROFESSOR) Department of Information Technology ABV-IIITM
Introduction
What is Pricing ?
• Pricing is one of the four major elements of the marketing mix.
• Pricing is an important strategic issue because it is related to product positioning.
• Pricing affects other marketing mix elements such as product features, channel decisions, and promotion.
• Pricing is an approach in which marketers put a value tag on a particular product.
Pricing Pricing Strategy
• Pricing can be done during the various stages of the product lifecycle. These are called Pricing Strategies
introduction decline growth maturity
Pricing Methods
To set the specific price level that achieves their pricing objectives, managers may make use of several pricing methods. These methods include:
• Cost-plus pricing - set the price at the production cost plus a certain profit margin.
• Target return pricing - set the price to achieve a target return-on-investment.
• Value-based pricing - base the price on the effective value to the customer relative to alternative products.
• Psychological pricing - base the price on factors such as signals of product quality, popular price points, and what the consumer perceives to be fair.
Pricing Strategies Matrix
• Premium Pricing. Use a high price where there is a uniqueness about the product or service. This approach is used where a
References: • Title: Analysis of pricing strategies for new product introduction ( From emraldinsight.com) Author(s): Biren Prasad • Case studies from ICMR.COM , Wikepeida . • Mr. Himanshu Goswami from makaan.com • Google Scholar