pricing

why pricing is important?Various forms of pricing What you pay for admission? What you pay for purchasing ctv etc?What organisations pay for employees ? What banks charge for? What you pay to government? What you pay while traveling on highways etc

Consumer psychology &pricing

Reference pricing-upper limit,lowe limit etc Price quality inferences Pricing policies(steps) 1.selecting pricing objectives a.Survival b.max market share c. max profits

2.determining demand
1.alternative prices 2. elastic& inelastic demand Estimating demand curves Statiscal analysis,experiments Surveys 3.estimating costs Variable,fixed costs Target costing approach used by japenese cos

4.analyzing competition costs,prices,offers

5.selecting pricing methods 3cs Costs,competition prices, customer demand 1.mark up pricing-return on sales/costs Ignores demand&competition

 2.target pricing/roi 3.perceived value pricingcustomers perceived value Based on product,image,service,personal 4.value pricing-southwest airlines,tide,subhiksha 5.going rate method

Costs
6.auction-english-high Dutch-descending b2b reverse auction Sealed- bid 6.selecting the final price impact on mktg activities,competition,Company pricing policies

7.adapting price
Segment-ex-power,Telecom Trade-cash discounts,volume discounts Promotional pricing- to stimulate early purchase 1.loss leader pricing(drop the price on popular brand) Channel,timespecial event etc 8.price increase & price cuts

Resources
Summarize project resources
Dedicated (full-time) resources Part-time resources If project is constrained by lack of resources, suggest alternatives

Understand that customers may want to be assured that all possible resources are being used, but in such a way that costs will be properly managed

Goals for Next Review

Date of next status update List goals for next review
Specific items that will be done Issues that will be resolved

Make sure anyone involved in project understands action plan