Product & Conventional approaches to pricing

•Product is anything that satisfies human needs.

• Standard cost system with normal allowance for scrap, waste, rework; zero defect standard is not practical.

• Overhead variance analysis; maximize production volume (not quality) to absorb overhead.

• Variance analysis on:• Raw material price

• Procedure from multiple suppliers to avoid unfavorable price variance

• Low price/low-quality raw materials

• No emphasis on non-financial performance measure

Profitable Pricing, Role of pricing in the Marketing MixProduct item

T

Product line1. Stretching (Upward/ Downward)

2. Line pruning

Core product development

Packaging:-• easy to carry

• easy to recognize

Packaging strategy

8. Speed to Shelf

9. Protect yourself

Consumers seek better and improved sports shoes that are comfortable and provide value for money.

The Role of Price in the Purchase Decision

Since shoes market is facing stiff competition so companies adopt to competition based approach to price the sport shoes. In this the different strategy are:-

oCompetitive approachoGoing rate approach

Apart from that companies also resort to psychological pricing. In this the different types of pricing strategy are:-

o Image pricing

o Reference pricing

Costing for Pricing

• Market situation in which (usually two) powerful competitors try to usurp each other's market share by progressively reducing prices until one of them retreats, at least temporarily.

• How to fight Price war?Diagnosis

PrescriptionCure

flipkart/ Yipme

Introduction to Financial Analysis

Introduction to Financial Analysis

Pricing and behavioral aspects of pricing

Judging and Measuring Price Sensitivity

Price Sensitivity Model

Product Line Pricing

• Two-Part Tariffs

• Temporal pricing

• Dynamic pricing

• Transfer pricing

Managing Price for Competitive Advantage –

•Understanding and reacting to competition

• Pricing Strategy

Managing Price for Competitive Advantage –

Thank You!