Sunday 29 September 2013

Pricing Decisions


Pricing Concepts:

Any action that you take in life, you have to pay a price for it. “Life is all about paying the prices.” The question that arises is which price is the right price one should pay at? Price is the only revenue producing element of the marketing mix.
Steps in setting a Pricing Policy:
1. Selecting the pricing objective
2. Determining Demand
3. Estimating Costs
4. Analyzing Competitors’ Costs. Prices, and Offers
5. Selecting a Pricing Method
6. Selecting the final price

Pricing Strategy:
Surf excel is reworking the strategy of moving the brand away from functional benefits and reworking on the emotional connect. 



Price: 1Kg = 120 Rs.
           0.5Kg= 70 Rs.

List Price= 100
Add: Distributor price (5%) = 105
Add: Trade price (5%)  = 110.25
Final Retail price (10%) = 121
 

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