Thursday, 6 October 2011

PakNet (Internship report) Chapter-5


PRICING
The company deals with internet product and internet services .the company sell product by adding its markup. Mainly the selling is VAS value added selling.
The price of product depends upon
·         Government Polices
·         Tax Rate
·         Nature of demand in the market
·         Nature of Product
PRICING METHODS
Paknet mainly adopted three types of pricing method.
1.            Cost plus pricing
2.            Demand oriented methods
3.            The  most of all based on competitor prices
Paknet pricing is mostly based on the competitor’s pricing. And according to services it can very .Competiting pricing when to be made in the price the price may be changed according to situation.
In cost plus method the company estimates their expenses on the product, then the company in the cost adds a profit and sales are made at this cost plus pricing
Price of one unit of product = total cost of the unit +Desired profit.
PLACE
Place refer to the distribution of products to the customers. Means that how we distribute our  products.
SEGMENTATION
Markets consist of buyers, and buyer differ in many ways, the customers are too numerous and diverse in their buying requirements. Instead of competing every where, the company need to identify the market segments that it can serve most effectively.
The Paknet divide market in to three main regions.
1.                  Center
2.                  South
3.                  North
The customer are identified and qualifying from nearest office and also products are delivered to them.
CHANNELS OF DISTRIBUTION
Channels of distribution are very important because it is through these channels that the product is carried from the place of production to the place of consumption. The product is delivered to its main dealer through there main station in charge. Where they   directly sell to the final consumer.

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