1. Internal Factors Affecting Pricing Decisions Marketing Objectives Survival. Current Profit Maximization. Market-Share Leadership. Product-Quality Leadership.

Other Objectives Marketing Mix Strategy Costs Organizational Considerations 2. External Factors Affecting Pricing Decisions The Market and Demand Pricing in ifferent !ypes of Markets" monopolistic, oligopolistic competition, A p re monopoly Consumer Perceptions of Price and #alue. $nalysing the Price- emand %elationship. Competitors! "rices and O##ers Other $xternal %actors

Setting Objectives *nformative advertising Persuasive advertising %eminder advertising ' dget Decision Message Decision Message 'eneration Message +valuation and Selection Message +xecution Sales promotion as a promotion tool. cons mer promotions Tools Samples Cash refund offers Coupons Price packs Premiums Patronage re)ards Point-of-purchase ,P-P. promotions Contests/ s)eepstakes/ and games trade promotion Tools discount allo)ance sales#orce promotion Public relations as a promotion tool. Press relations" Product pu0licity Corporate communications" Lo00ying" Counselling" Major " blic ,elations Tools Speeches special events ne)s )ritten materials $udio-visual materials Corporate identity materials Personal selling as a promotion tool. salespeople/ sales representatives/ account executives / sales consultants/ sales engineers/ field representatives/ agents/ district managers/ and marketing representatives Sales#orce management ( setting sales#orce objectives, designing sales#orce strategy, and recr iting, selecting, training, s pervising, and eval ating the #irm!s salespeople) "rinciples o# Selling( sales-oriented approach/ customer-oriented approach

General Pricing Approaches

Cost&'ased "ricing Cost-Plus Pricing &reakeven $nalysis and !arget Profit Pricing( breakeven pricing, target pro#it pricing) ' yer&'ased "ricing( "erceived&val e pricing Competition&'ased "ricing 'oing-%ate Pricing Sealed-&id Pricing

New product pricing strategies.

"ricing an *nnovative "rod ct Market-Skimming Pricing Market-Penetration pricing

Price adjustment strategies.

Disco nt "ricing and Allo+ances Cash iscounts Quantity iscounts (unctional iscounts Seasonal iscounts $llo)ances Discriminatory "ricing, forms" Customer-segment pricing. Product-form pricing. Location pricing. !ime pricing. "sychological "ricing, re#erence prices "romotional "ricing Advertising as a promotion tool.