1. How should a company adapt prices to
meet varying circumstances and
opportunities?
2. Companies do not set a single price but
rather develop a pricing structure
3. Structure reflects the variations in
• Geographical demand and costs
• Market-segment requirements
• Purchase timings
• Order levels
• Delivery frequency
• Service contracts, etc.
4. Pricing for rural markets
• No compromise on quality
• Lesser quantity
• ‘Coinage’ pricing
5. Geographical Pricing
4 important price adapting strategies:
Barter, Compensation deal, Buyback arrangement, Offset, Countertrade, etc.
7. Risks of discounting
• Discounting may become the norm
• Undermining the value perceptions of
offerings
• Self-destruction by always being on sale
• Losing long-run profits