PC

• MARKETING AND SALES -

  where your pricing decision becomes reality.
• CAPTIVE PRODUCT PRICING-

  pricing of product/both core product and no. of accuracy product.Take advantage of product to attract.
• CORE PRODUCT-

  price more affordable than captive product.
• CAPTIVE PRODUCT-

  enhance core product, without it core product has no value.
• 4 TYPES OF PRICE OBJECTIONS (ABOUT RISK)-

  1.PRICE/RISK-price,cost,budget,roi

  2.QUALITY OF RISK-costumer is concerned about your product and services.

  3. TRUST/RELATIONSHIP - legitimacy/credibility

  4.STALL- customer attemp to stall decision
• 4 HANDLING OBJECTIONS:

  1.QUESTION TO UNDERSTAND

  2.MINIMIZE

  3.COMPARE RISK AND BENEFITS

  4. QUESTION HIS ACCEPTANCE
• 1.QUESTIONS to understand -

  customer reasoning and determine his emotional state.
• 2.MINIMIZE

  -using closed question/get him back on track.
• 3.COMPARE RISK AND BENIFITS

  -previous agrees /provide evidence using FAB( FEATURED ADVANTAGE BENEFIT) Statement.
• 4. QUESTION HIS ACCEPTANCE -

  using closed question.
• PROMOTIONAL PRICING-

  seller reduce the price to attract/mrktng.sales tactics.
• PRICE DISCRIMINATION ON CUSTOMER BEHAVIOR ON KEEPING CUSTOMER- changing different price for the same goods and services.
• FIRST DEGREE PRICE DISCRIMINATION -

  perfect/charges in different price for every unit consumed.
• SECOND DEGREE PRICE DISCRIMINATION-

  charging different price to different quantities/bulk orders discount.
• THIRD DEGREE PRICE DISCRIMINATION-

  charging different price to different consumer group
• 7 GUIDELINES FOR PRESENTING YOUR PRIZE:

  1. DELIVER IT WITH CONFIDENCE-worst thing is to look unconfident.
  2. MAKE THE OFFER TIME SENSITIVITY- state"good for  x amount of time"
  3. DON'T PRESENT THE OFFER AND THEN ASK SOMETHING STUPID- present and be silent.
  4. DO NOT NEGOTIATE- walk away if rejected

  5. BE READY TO PRESENT 2 OPTIONS- FIRST(high price) SECOND,(price you're looking.)

  6. IF DEALING WITH SOMEONE WHO HAS AN EGO- allow them to make a choice

  7. USE PRESUMPTIVE CLOSING TECHNIQUES-give the price and go ahead start working next Monday.
• KEY TO SUCCESSFULLY PRESENTING PRICE-

  know what you offer before presenting and whatever offer will not affect your price/profit margin.
• PERSISTENCE-

  underappreciated attributes in sales
• RECENCY BIAS-

  newer lead is better than old.
• POCKET PRICE-

  determine a product profitability like discount , rebates, promotion.
• BUNDLING- r.epurpose value that already created for more value/ combine small into large offer
• Pricing for profit

  Pricing strategy to maximize profits
• Unbundling


  Splitting an offering into smaller parts
• Bundling and unbundling

  Both create value for the customer without creating additional costs
• Price administration

  • Handling price adjustments for sales under different conditions
• Managing transactions

  • Decisions around price structure
  • Price adjustments
• Peak load pricing

  High price during high demand periods, low price during low demand periods
• Quantity discount

  Lower price for larger purchase quantities to motivate wholesalers/retailers
• PRICE STRUCTURE DECISIONS-

  how different characteristics of product will be priced.
• PRICE ADJUSTMENT MADE FOR SALE-

  different quantities, different distributors

  .
• A TRADE FUNCTIONAL DISCOUNT-

  to independent wholesalers and retailers
• CASH DISCOUNT-

  reward for payment.
• ADVANCE PURCHASE DISCOUNT-

  low price early purchase.
• QUANTITY DISCOUNT-

  common for volume purchase
• F.O.B-

  ( free on board)- seller price from point of shipment.

  -buyer select the mode of transportation cost
• SINGLE -ZONE PRICING-

  seller receive different net returns.
• MULTIPLE -ZONE PRICING-

  deliver prices are uniform, two or more zone.
• 4 ps in marketing mix-

  Price

  Product

  Promotion

  Place
• Incremental cost-

  Cost associated with changes in pricing and sales.( Raw materials, utilities, wages, direct labor, shipping and packaging.)
• INTERNAL FINANCIAL CONDITIONS AND EXTERNAL MARKET-

  anagosticforces pricing decision.