Steps taken in pricing of a product.

Draw a diagram showing the various steps that are taken in
the pricing of a product.

Steps taken in pricing of a product.

FACTORS THAT INFLUENCE PRICING
 Demand constraints & Cost Constraints
 Competitor Prices & Other Constraints
Constraints

ESTABLISH PRCING OBJECTIVES
 Price and sales-volume objectives
 Other Objectives

DETERMINING THE BASIC PRICE
 Cost-orientated methods
 Demand orientated methods
 Competition-orientated methods

PRICE ADJUSTMENTS NEGOTATING THE FINAL
 Discounts PRICE
 Geographic location
 Product mix
 Initiating and responding to
price changes

THE FINAL PRICE OF THE PRODUCT