how should a company adapt prices to meet varying circumstances and opportunities?

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