recap of 8/11/11

Recap of the lecture on 8^th november

we started with the product description.where we learned that pricing is the main strategy in any product description.

We also learned what is preceived value.

PV= sum of benifits- sum of cost.

We also got to know that price is directly proportional to quality.

In our country people have a perception that if the price is more than the product is really good.

When the price suddenly decrease the first thing that comes in our mind “is that product really worthy as it was earlier.” there must be some quality difference.and if it happens the brand may loose its faith and the customer may switch to some other alternatives. Thats why pricing plays a vital role in a product description.so we must aware of that and should not play with the price.however we can play with the quantity, volume, packaging etc.

In case of nestle product (maggi) as abhisek mentioned in the class that they reduced the size of the packet and it was quite a well decision. In the market today also where the inflation is taking place the prices of the maggi is rising, it is available in different taste and different price where the price starting from 12 to 16 or 18 rs. Per 80 gms. But i found that knor has applied the same strategy of playing with volume where it price is still same(10 rs) but the quantity is reduced. So my 15 minutes servey in the big bazaar on that pricing told me that it is really very dangerous to play with the price of your product, doesnt matter wheather you are a big brand.because i found people were atleast looking at the other alternatives and checking out which were available there like foodles,knor and etc.and some of them were purchasing a foodle or a knor instead of maggi. This can be an impact of increased price of maggi.so it can be a danger for the nestle product in future.

Next we learnt about subliminal perception..

i.e. When we go to watch the movie in theatre, in the break time we take something like popcorn, coffee etc. May be there is no need of taking popcorn but this is our subliminal perception which tells us that we should take popcorn in the breaktime of a movie.

Then we got to know about some important factors of pricing.

When should a company initiate a price change?

How do consumers process and evaluate prices?

how should a company respond to a competitors price challenge?

Which will be discuss in the upcoming lectures. It will take 6 lectures to finish the pricing of a product,told by sir.

We will also be disussing on the following indusries that how they apply the pricing strategies.

1. Airlines industry.
2. Telecom industry.
3. Entertainment industry.
4. Educational industry.
5. Food & Beverages .

Participant

Rajesh Bhagat.