MARKET BASED AND COMPETITOR BASEDB PRICING
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This document provides an overview of market-based pricing and competitor-based pricing. It defines market-based pricing as establishing a price based on existing market conditions, including customer perceived value, psychological price barriers, and going rate pricing. It then defines competitor-based pricing as strategies based on a firm's position relative to competition, including maintaining prices at par with competitors (premium, discount, and tender pricing). The document serves as a presentation on these pricing strategies for an MBA department.
MARKET BASED AND COMPETITOR BASEDB PRICING
- 1. APPA INSTITUTE OF ENGINEERING & TECHNOLOGY DEPARTMENT OF MBA PRESENTATION ON: MARKET BASED&COMPETITOR BASED PRICING SUBMITTED TO: PROF.BASAVARAJ.S.M SUBMITTED BY: MAHESH.PATIL
- 2. WHAT IS MARKET BASED PRICING...???
- 3. The process of establishing a price for a product or service based upon existing market condition is known as market based pricing.
- 4. Market based method 1.Customer perceived value : - what customer value the product at -price is set at an estimate of the products value to customer
- 5. 2. Psychological price barriers Prices are set based upon the psychological expectation of customers about price.
- 6. 3. Going rate pricing Going rate pricing is a common practice with homogeneous products with very little variation from one product to another.
- 7. WHAT IS COMPETITOR BASED PRICING...???
- 8. Meaning: Competitive pricing strategies based on the firm’s position in relation to its competition
- 9. Competition based pricing This pricing method is useful when the product is homogeneous and market is highly competitive. Under this method, the company tries to maintain the price of its products more or less at par with its competitors price. This pricing method includes : i. Premium pricing ii. Discount pricing iii. Tender pricing
- 10. Competition based pricing (i) Premium pricing Premium pricing means pricing above the level adopted by competitors. (ii) Discount pricing Discount pricing means pricing below the level adopted by competitors.
- 11. Competition based pricing (iii) Tender pricing In this method the sellers tries to base the price of bid on the basis of the competitor’s price. It is more applicable to industrial products and the products or services purchased and contracted by institutional customers. Such customers usually go by competitive bidding through sealed tenders or by quotations.
- 12. THANK YOU...!!!