how should a company adapt prices to meet varying circumstances and opportunities
TRANSCRIPT
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ADAPTING THE PRICE
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PRICE ADAPTION STRATEGIES
•GEOGRAPHICAL PRICING.
•PRICE DISCOUNTS AND ALLOWANCES.
•PROMOTIONAL PRICING.
•DIFFERENTIATED PRICING.
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GEOGRAPHICAL PRICING
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CASH , COUNTERTRADE , BARTER
COUNTERTRADE FEATURES:-
1.BARTER
GEOGRAPHICAL PRICING
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2.COMPENSATION DEAL
GEOGRAPHICAL PRICING
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2.BUYBACK ARRANGEMENT
GEOGRAPHICAL PRICING
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4.OFFSET
OFFSET DEAL
GEOGRAPHICAL PRICING
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PRICE DISCOUNT AND ALLOWANCES
•EARLY PAYMENT•VOLUME PURCHASES•OFF SEASON BUYING
DISCOUNT PRICING IS THE MODUS OPERANDI OF COMPANIES PRODUCTS AND SERVICES
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FEATURES:-1.DISCOUNT – 2/10 , NET 30•ABOVE EXAMPLE IMPLIES PAYMENT DUE WITHIN 30 DAYS•DEDUCT 2% BY PAYING WITHIN 10 DAYS
PRICE DISCOUNT AND ALLOWANCES
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QUANTITY DISCOUNT-EXAMPLE-”$10 PER UNIT FOR FEWER THAN 100 UNITS , $9 PER UNIT FOR 100 OR MORE UNITS”
PRICE DISCOUNT AND ALLOWANCES
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FUNCTIONAL DISCOUNT ( TRADE DISCOUNT )-•SELLING•STORING•RECORD KEEPING
PRICE DISCOUNT AND ALLOWANCES
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SEASONAL DISCOUNT - ALLOWANCE – ( OFF SEASON DISCOUNT ) ( TRADE IN ALLOWANCE )
PRICE DISCOUNT AND ALLOWANCES
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PROMOTIONAL PRICING
LOSS LEADER PRICINGSPECIAL EVENT PRICING
SPECIAL CUSTOMER PRICING
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• CASH REBATES
• LOW INTEREST FINANCING
• LONGER PAYMENT TERMS
PROMOTIONAL PRICING
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• WARRANTIES AND SERVICE CONTRACTS • PSYCHOLOGICAL DISCOUNTING
PROMOTIONAL PRICING
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DIFFERENTIATED PRICING
PRICE DISCRIMINATION –
1.FIRST-DEGREE ( DEMAND )
2.SECOND - DEGREE ( VOLUME )
3.TIERED PRICING - PAYING MORE WITH HIGHER USAGE
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4.THIRD DEGREE –
•CUSTOMER SEGMENT PRICING
•PRODUCT FORM PRICING
•IMAGE PRICING
PROMOTIONAL PRICING
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4.THIRD DEGREE –
•CHANNEL PRICING
•LOCATION PRICING
•TIME PRICING
PROMOTIONAL PRICING
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YIELD MANAGEMENT : YIELD PRICING
PROMOTIONAL PRICING
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SUMMARY
COMPANIES ADOPT A PRICING STRUCTURE THAT REFLECTS-
• GEOGRAPHICAL DEMAND AND COSTS• MARKET SEGMENT REQUIREMENTS• PURCHASING TIME• ORDER LEVELS
PRICE ADAPTATION STRATEGIES-
• GEOGRAPHICAL PRICING• PRICE DISCOUNTS AND ALLOWANCES• DISCRIMINATORY PRICING
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AKASH RANJAN PRADHANNIT ROURKELADURING A MARKETING INTERNSHIP BY PROF.SAMEER MATHUR IIM LUCKNOWWWW.IIMINTERNSHIP.COM
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