Factors Affecting Pricing

• By 
• Sumit Sharma
• Department of Biotechnology

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• Target pricing
• Loss leader
• Value pricing
• Cost plus pricing
• Marginal cost pricing
• Penetration pricing
• Going rate pricing
• Marketing pricing

Value pricing :

• Based on consumer perception.
• Price set by the company as per the perceived value.
• Example- status product/ exclusive product Penetration pricing:
• Price set to penetrate the market.
• Low price to secure high volumes.
• May be useful if launching into a new market.

⦿Leveraging the power of the brand name to cover the market more effectively.

Brands can convey six level of meaning:

✞Attribute

✞Benefits

✞Values

✞User

✞Culture

Line extensions: same brand name, different product in the same product line

.ExampleIBM laptops.

Multi brands: different brand name- same product . Example-Thums up and coca cola.

Co- branding: Creating new brands which are part of the parent brand family- expressed as suffixes of the parent brand. Example-Apple I-Pod.

case in most financing services.

⦿Marketing: the process of

creating ,

distributing, promoting and pricing goods,

services and to develop and

maintain

favourable relationships with stakeholder in a dynamic environment.

• Sales forecast
• Selling costs
• Balance sheets
• Collateral
• Working capital
• Return on investment
• Pre-tax profit

• Gross profit ⦿CAPITAL ACQUISITIONS:
• Debit leverage, stock sales and gains from operation.
• Equity financing is preferred for related

diversification.

• Debt financing is preferred diversification.

⦿RESOURCE ALLOCATIONS

for unrelated

• Dividends, stock price and reinvestment.
• Keeping the stock holder contented with consistent dividends.
• Use of stock splits to maintain high stock prices.
• Tracking stock keeps interest in company, but doesn’t allow take over.

⦿Assessing demand of the products.

⦿Assess the long term the viability of the proposed enterprise and to ensure that the necessary conditions exists for successful production.

the other party, thereby reducing the risk of the partnership collapsing.

⦿Farmer to domestic trader

⦿Farmer to retailer

⦿Linkages through a leading farmer

⦿Farmer to exporter

⦿Contact farming

⦿Farming to agro-processor

⦿Linkages through cooperatives

⦿What

⦿funding

is public

and private

⦿PUBLIC: It generally refers to government or organizations functioning under state budgets.

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⦿PRIVATE: It would be profit or non profit or voluntary sector and partnership would

References��

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• Expanding Horizons: Biotechnology, BD Singh
• Bioprocess enginnering by stanbury and whitaker

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