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Proclaiming Value via
Sustainable Pricing
Strategies
PRESENTED BY–
Rahul Dogra
CUHP14MBA(TT)14
PRICE PLANNING PROCESS
Corporate mission and
objectives
Pricing objectives
Pricing Strategy
Internal Constraints
Legal Constraints
Customer Demand
Competitive Action
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.
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
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.
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
THANK YOU

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Sustainable Pricing Strategies for Maximizing Value

  • 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