Recap of 11/11/11

On 11/11/11 we discussed on the topic common pricing mistakes we were divided into four i. e.
1.Determining the costs and take traditional industry margins.
2.Failure to revise price to capitalize on market changes.
3.Selling price is independent of the rest of marketing mix.
4.failure to vary price by item,market segment,distribution channels,and purchase occasion.
       After that we discussed about the Consumer Psychology and pricing in which the consumer is assumed to be the price taker and purchase decisions are made on how consumers perceive prices and what they want to be the current actual price.And for determining the prices we consider four topics....
1.Reference Prices
2.Price-quality inferences
3.Price endings
4.Price cues

After that we discussed about the steps in setting the price.we have basically six steps i.e.
1.select the price objective
2.determine Demand
3.estimate costs
4.analyze competitors price mix.
5.Select pricing method
6select final price.
At last for understanding all these points we were given some industries to each group which we were required to explain the pricing strategy of them with respect to these points, which we needed to post to the blog on the same day.

Participant : Deepak Khuntwal