PRICING THE NEW PRODUCT & TRADE PROMOTION

Diwakar Silwaldiwakarsilwal@gmail.com

PRICING THE NEW PRODUCT

New product pricing apart of NewProduct development……

NPD

PRICING

NEW PRODUCT PRICING

HOW SHOULD WE CHARGE FOR A NEW PRODUCT??

PEN

ETR

ATIN

G

PRIC

ING

SKIM

MIN

G

CONSUMER VIEW ON MRP

RULES OF PRICING

All prices must cover costs and profits

The most effective way to lower prices is to lowercosts

Review prices frequently to assure that they reflect thedynamics of cost, market demand, response to thecompetition, and profit objectives

Prices must be established to assure sales

TRADE PROMOTION

Marketing or Promotional activities undertaken to promote anew product, increase sales of existing product, expandmarket share or create a brand awareness.

Trade shows, Special pricing, sales incentives, discounted orfree display fixture, demonstration, tour, free tickets such asmovies, parties, sporting events, novelties etc.

TYPES OF TRADE PROMOTION

In-store displays

Temporary Price Reductions (TPR)

Coupons

Contest

Sampling

Rebates

ISSUE IN TRADE PROMOTION

Issue in trade

promotion

Lack of accurate

timely information

Inability to plan

promotions based on analytics

Ineffective organization and partner integration

Lack of appropriate

Key Performance

Indicators (KPI)

Activity effects on Sales

50%

30%

20%Marketing & AdvertisingTrade PromotionConsumer Promotion

THANK YOU !!!