 1)
Moin Rehman
(0013)
 2) Ahmed Sharif
(0043)
 3) Majid Jabbar
(0066)
 4) Zain Ali
(0075)
 5) Humais Raza
(0085)
 6) Mubashir Ahmed (0096)
Pricing Strategies
 1)
Market-skimming Pricing
 2)
Market-penetration Pricing
 When
a product which is new in the market or just
launched is sold at a relatively high price, because
of its uniqueness, benefits or it’s current WOW
factor.
 Ex: Iphone XS Max
 Setting
a low price for a new product in order to
attract a large number of buyers.
 Ex:
New brand sale/discount
 1)
Product Line Pricing
 2) Optional Product Pricing
 3) Captive Product Pricing
 4) Product Bundle Pricing
 5) By-Product Pricing
 Takes
into account the cost difference between
products in line, customers evaluation of their
features, and competitors prices.
 Ex:
 Takes
into account optional products along with
the main product.
 Ex:
 Combines
 Ex:
several products at a reduced price.
 Setting
a price of products that must be used along
with the main product.
 Ex: A printer packed with ink.
 Setting
a price for by-product in order to make
main products price more competitive.
 Example: Molasses used in refining sugar.
1)
2)
3)
4)
5)
6)
7)
Discount and Allowance Pricing
Segmented Pricing
Psychological Pricing
Promotional Pricing
Geographical Pricing
Dynamic Pricing
International Pricing
 A straight
reduction in price on production during
a stated period of time.
 EXAMPLE
 CHARLIE bought a dvd player, which costs
$300.But he was given a discount of $40.
 TOTAL COST=$300
 DISCOUNT=%40
 $300-$40=$260
 SO,CHARLIE paid $260 for the a dvd player after
discount
 Promotional
money paid by the manufacturers to
retailers in return for an agrement to feature the
manufactureres products in some way.
 EXAMPLE
 We will pay workers, on this agreement if they
sell our product.
 Selling
a product or service at two or more prices
is not based on differences in costs
 EXAMPLE
 Different prices of tickets in cinemas for VIP’s &
others.
 The
price is used to say something about the
products.
 Prices
that buyers carry in their minds and
refer to when they look at a product
EXAPMLE
We decide price of product after seeing it.
 The
act of offering a lower price temporarily in
order to enhance the effectiveness of product
sales efforts to cost sensitive consumers.
 Example
 Many business will offer promotional pricing
as a sales incentive when initially launching a
particular product line to potential consumers.
Its intended to reflect the costs of shipping to different
locations.
 Example
 In India, there are multiple zones with multiple taxes
per zone. For example Gujrat, which is a state in India
has 15% tax whereas Delhi has 5% tax. If the base cost
of product is 100rs, then after taxes the price of product
in Gujrat would be 115rs and Delhi it would be 105rs.

1)
2)
3)
4)
FOB-Origin Pricing
Uniform-delivered Pricing
Zone Pricing
Basing-point Pricing
The shipping cost from the factory or warehouse is
paid by the purchasers. Ownership of the goods is
transferred to the buyer as soon as it leaves the point of
origin.
 Example
 Assume that you’re a jelly dealer and you purchase
10000 jars of jelly from company XYZ. Company
XYZ manufactures the jars of jelly in Japan and you
sell them in your store in California. If your purchase
contract says “ FOB, San Francisco, ABC warehouse”
this means company XYZ will pay the loading and
shopping costs to get the 10000 jars of jelly from its
Japanese factory to the ABC warehouse in San
Francisco.

 In
this, the company charges the same price
plus freight to all customers, regardless of
their location.
 Example
 If you buy a pair of shoes from Shoebox
Franchise in bwp, the delivery charges will be
same in every area of bwp.

A geographical pricing strategy in which the company
sets up two or more zones. All customers within a zone
pay the same total price.
It is a pricing system in which a company bases its
prices of two components:
 1) Company sets a price for product itself.
 2) Set shipping price depending on the distance from
the base point.
 Example
 If the basing point is Chicago, then a shipment within
Chicago will cost the base price, and a shipment
outside Chicago will cost the base price plus the set
shipping rate anywhere within that zone.

 It
is a pricing method in which the
manufactures some or all of the freight costs
involved in transporting the goods to the
customers.
 Example
 Cars.
 It
is the pricing method that depends on the
need of the customers and situations.
 Example
 Airlines set pricing depending on the type of
seats.
Companies that market their product Internationally
must decide what prices to charge in different countries
in which they operate.
 Example
 KFC

1) Initiating price changes.
 2) Responding to price changes

 It
must anticipate possible buyer and
competitors reactions.
 1) Initiating price cuts.
 2) Initiating price increases.
 3) Buyer reaction to price changes.
 4) Competitors reactions to price changes.
A
Company may also cut prices to use the
“low prices” as a promotion.
 For example
 Big bazaar once announced on radio about the
sales on different products.
 1) A successful
price increase can greatly
improve profits.
 2) Rising costs squeeze profits margins and
lead companies to pass cost increases along to
customers.
 Customers
do not always interpret price
changes in straightforward way.
 A price increases, which would normally
lowers sales, may have some positive meanings
for buyers.
 For example
 titan game.
 1)
Competitors are most likely to react when
the number of firms involved small.
 2) Competitor do not behave alike, this
amounts to analyzing only typical competitor.
 1)
Prices should be fair according to law.
 2) Competitors are not allowed to fix the prices
as they wish.
 For example
 MRTP(Monopolies and Restrictive Trade
Practices).
MRTP stands for Monopolies and Restrictive
Trade Practices. This act was designed in 1969.
 1) To ensure that the operation of the economic
system does not result in the concentration of
economic power in hands of few.
 2) To provide for the control of monopolies.
 3) To prohibit monopolistic and restrictive
trade practices.

 1) Anti-Competitive Agreements.
 2) Abuse
of Dominance.
 3) Unfair Trade Practices.




It is an agreement where two or more companies operating
as competitors in the same market make an agreement to do
something together.
For example
To fix prices or limit production which has the result of
reducing the competition on that particular market.

An agreement between competing business includes
price fixing.

An agreement between seller and buyers includes
engaging in resale price maintenance.
 The

illegal use of dominant
enterprise position.
 Do
not follow the unfair means of trade
practices
 For example: Do not write any false
information about bargain and sale on
 the advertisement of the product if in reality
you can’t fulfill it.