Price mix.pptx

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					Price mix
• Describe the factors influencing pricing
  decisions.
• Explain various methods of pricing.
Factors influencing product pricing
Internal factors
• Objectives of the company
• Characteristics of the product
• Cost of production and expected margin of profit
• Goodwill of the firm
• Product life cycle
• Promotion of products
• Product line
• Credit policy
•External factors
1. Characteristics of customers
2. Market situation
3. Channel of distribution
4. Government control
5. Demand position
6. Degree of competition
7. economic functions
    Pricing methods
•   Cost plus pricing
•   Skimming pricing
•   Market penetration pricing
•   Marginal cost pricing
•   Pricing as per customers ability to pay
•   Mark up pricing difference bet sales price &cost
•   Perceived valued pricing
•   Break even pricing
•   Target oriented pricing
•   Psychology pricing
•   Below cost pricing
•   Follow the leader pricing

				
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posted:2/12/2014
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