Page 175 - DMGT509_RURAL MARKETING

Rural Marketing Anand Thakur, Lovely Professional University

Notes Unit 9: Pricing Strategies

CONTENTS
Objectives
Introduction
9.1 Pricing Elements

9.2 Pricing strategies
9.3 Production Costs
9.4 Finalization of Price

9.5 Rural Pricing Strategies
9.6 Pricing and Income Levels
9.7 Competition and Pricing
9.8 Role Play Module 3
9.9 Summary

9.10 Keywords
9.11 Review Questions
9.12 Further Readings

Objectives

After studying this unit, you will be able to:
 Define Product and Pricing Strategies for Rural Market.
 Discuss the Production Costs.
 Describe the Finalization of Price.

 Explain the Economies of Scale of Manufacture.

Introduction

In the pre-industrial revolution era, the tribe centred political entities believed in barter system
as a means of commerce in which two tribes swapped their produce as per the value each had for
each other's products.

V alu e o f p ro d uc t A w ith trib e X in V alu e o f p ro du c t B w ith trib e Y in
e xc es s of the ir n ee ds ex c es s of the ir n ee ds

For example if tribe X has excess of cotton and tribe Y has excess of wheat they would exchange

the products to satisfy their respective needs.

Seller with product Buyer with money

170 LOVELY PROFESSIONAL UNIVERSITY