Proclaiming value via sustainable pricing strategies
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This document discusses pricing strategies for sustainable products. It outlines the pricing process, which considers corporate objectives, pricing objectives, internal constraints like costs, legal constraints, customer demand, and competitors. It defines internal constraints as fixed and variable costs. Customer demand is defined as the desired benefits relative to the cost. Legal constraints regulate green product marketing at various governmental levels. Pricing strategies discussed include carbon offset pricing and strategies based on market position like break-even point, cost-based, and value-based pricing.
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Proclaiming value via sustainable pricing strategies
- 1. Proclaiming Value via Sustainable Pricing Strategies PRESENTED BY– Rahul Dogra CUHP14MBA(TT)14
- 2. PRICE PLANNING PROCESS Corporate mission and objectives Pricing objectives Pricing Strategy Internal Constraints Legal Constraints Customer Demand Competitive Action
- 3. Internal Pricing Constraints The constraints within the firm reflect the costs incurred to produce, sell, and deliver a product. One can distinguish between fixed and variable costs associated with a product. Fixed costs refer to cost factors that do not change in the short run. variable costs refer to costs that fluctuate with the amount of product sold.
- 4. Customer Demand In order to assess the potential of a market or market segment, it is necessary to understand what is valued by the customer. Value may be defined in the following manner: Value = Desired benefits/Relative cost
- 5. Legal Constraints The legal constraints refer to the regulatory requirements associated with the marketing of green products. These constraints are established and regulated at the international, regional, state, and local levels.
- 6. Pricing Strategies Carbon offset pricing refers to situations under which the marketer of a green product enables the purchaser to compensate for the greenhouse gas emissions associated with consumption. In many cases, the specific strategies the firm will use are based on the firm s position in the market. Break even point Cost based pricing valued based pricing
- 7. THANK YOU