A sophisticated pricing strategy is essential for successful product sales. There are many innovative pricing models to help set buying incentives. With our presentation, you can define the appropriate pricing for your products and services. Step-by-step, you will be able to design and present your pricing policy. Download our template now and develop profitable pricing strategies: http://www.presentationload.com/pricing-policy-powerpoint-template.html Illustrate your pricing strategy through constructed graphs with our PowerPoint slides. The pricing policy, together with the product, communication and distribution policy, is an important pillar of the marketing mix. The goal is to create purchase incentives for customers by skillful price structuring. This PowerPoint set summarizes the importance, objectives, factors, strategies, tools and risks of pricing in your business.

1. PREMIUM POWERPOINT SLIDES
Pricing policy

2. PRICING POLICY
POWERPOINT TEMPLATE

3. DEFINITION
Pricing Policy, Price Structure and Pricing Strategy
PRICE
PROMOTION
PRODUCTPLACE
PRODUCT POLICY
COMMUNICATION
POLICY
PRICING POLICY
DISTRIBUTION POLICY

4. Pricing
This is part of the
marketing mix along
with the product,
communication and
distribution policies.
However, it has a
major position in
corporate practices:
WHY? …
DEFINITION
Prominent Role of Pricing in the Marketing Mix

5. DEFINITION
Prominent Role of Pricing in the Marketing Mix
STRONGEST MARKETINGWEAPON
 Customers and competitors react drastically to price changes
 Prices are easy to communicate
 Awaken the interest of customers to aim for finding the most
affordable purchase
STRONGEST MOTIVATORFOR PROFIT
 The price directly determines the revenues of the company
 The deductible amount has influence (the price is raised,
customers buy less)
 This indirectly affects costs depending on the sales quantity
WHY?
WHY?

6. IMPORTANCE
The Importance of a Pricing Policy for a Business
pricing policy
COST-BASED MARKET-BASED
DEMAND-BASED
FOR THE PRICE SETTER
COMPETITION-BASED
FOR THE TRADE PRICE

7. IMPORTANCE
The Importance of a Pricing Policy for a Business
Price level
Pricing policy
Price and value
communication
Price setting
Value added
Pricing
Pricing method,
negotiation tactics
Mediation of value
Units, controls,
price conditions
Economic value, product
packaging, segmentation

8. PRICING STRATEGIES
Price Progression Strategy
Price skimming strategy
(absorption STRATEGY)
 Starts with a high
introductory price
 Little by little or because
of the competition, the
price is slowly lowered
 Reason: new products,
companies with a
monopoly
 Examples: computer
hardware, hi-fi systems
Penetration pricing
 Low introductory price
 Reason:
 Customers should quickly
come into contact with
the product
 Quick deduction of large
amounts
 Diffusing the competition
 Low price is slowly
increased
 Example: the software
industry
PRICE
progression
STRATEGY

9. "PRICING FOR PROFIT"
From Simon Kucher & Partners
Companies can increase their profits
by having more effective pricing.
Effective pricing can be summed up
in three points:
 A CLEAR UNDERSTANDING OF THE
PRICE STRATEGY
 STRUCTURED PRICE
DETERMINATION
 DISCIPLINED IMPLEMENTATION
How Can Employers
Implement This?

10. "PRICING FOR PROFIT"
2. Price Structures and Rules
(MARKET)
GROSS PRICE
VALUE-OF-
PRODUCT
DIFFERENTIAL
REGIONAL
MARKET
DIFFERENTIAL
BASE PRICE
LEAD PRODUCT
VALUE-OF-
CUSTOMER
REWARD
SURCHARGES (CUSTOMER)
NET PRICE
PRICE GAP REALIZED PRICE
Capture the value through value-
based mark-ups1
Manage mark-downs through performance-
based discounts and rebates2
Charge for the extras through service
pricing3

11. INTERNALFACTORS
EXTERNAL FACTORS
Competition
Marketing mix
Costs
Market and buyers
Marketing objective
State (defined minimum or maximum
prices)
Strong retail chains
FACTORS FOR PRICE DETERMINATION
Internal and External Factors
There are many factors that affect the price of a product. The distinction lies
within these internal and external factors.

12. FACTORS FOR PRICE DETERMINATION
Price Determination
PRICE
INTERNAL
COSTS
DEMAND
SITUATION
CORPORATE
OBJECTIVES
COMPETITIVE
SITUATION
CUSTOMER
PERSPECTIVE

13. Conclusion
The skillful use of the
pricing tools, thorough
knowledge of the
customer‘s willingness to
pay and being set apart
from the competition will
lead to long-term (profit)
success.
PRICING TOOLS
Policy

14. PRICING STRATEGIES
Competitive Pricing Strategy
COMPETITIVE PRICING STRATEGY
MARKET PRICING STRATEGY
Price setter
Has the highest price
in the substantial
market.
Price TAKER
The price is always in
line with the price
setter.
Price FIGHTER
Has the lowest price
in the substantial
market.

15. IMPLEMENTATION TIPS
PRICING POLICY

16. COMMON ERRORS
Mistakes Made During Implementation
"Our competition is
raising their prices but
are still cheaper! "
"If we reduce the prices,
we’ll get less money!"
"It's hard enough to
keep our current prices!"
"So we lose most of our
customers!"
"At the moment, we can
not afford it!

17. IMPLEMENTATION TIPS
Pricing tips
Non-binding sales
price)
Is recommended by
the dealer/
manufacturer as
the retail price
reasonable
discounts that raise
no suspicion from
the customer
Example:
7,99 €
Instead of
8,00€
Always
undercutting the
competition with a
clear concept as the
price setter
(Opposite of price
setting)
Using better quality
to be set apart from
competition
EIA
OBSERVATION
SPECIAL
OFFERS
OPTIMAL PRICE
STRUCTURE
Price SETTING QUALITY
LEADERSHIP

18. There are no limits, neither in thought nor
emotion. It is fear that sets the limit.
Ingrid Bergman, Swedish actress 1915-1982

19. RISKS
Risks of Low-Price Guarantees

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