Distribution Ad Platform_ The Role of Distribution Ad Network.pdf
2. How should a company set prices initially for products and services? (Chapter 13) (Anurag Kar)
1. How should a company set prices
initially for products and services?
2. By,
Anurag Kar
B.Tech. Student
Department of E and ECE
IIT Kharagpur
Based on Chapter 3: Developing Pricing
Strategies and Programs
Of
Marketing Management: A South Asian
Perspective
By Kotler, Keller, Koshy and Jha
32. T y p e s o f P r i c i n g
M e t h o d s
Target Return
Pricing
Perceived Value
Pricing
Markup
Pricing
Going Rate
Pricing
Value PricingAuction Pricing
33. Markup Pricing
A standard markup is added to the
product’s cost and the price is decided.
Most elementary form of pricing.
34. Target Return Pricing
The firm determines the price
that yields it’s target rate of
return on investment.
35. Perceived Value Pricing
Prices based on
customers’ perceived
value of the product.
Perceived value depends upon
buyer’s image of performance of
the product, the channel
deliverables, the warranty quality,
customer support, supplier’s
reputation, trustworthiness and
esteem.
40. Impact of other
Marketing Activities
Company Pricing
Policies
Gain and Risk
Sharing Policies
Impact of Price on
other parties
Before setting the final
price
Certain additional factors
have to be considered.