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What is Zone Pricing in Marketing? PDF Download

Learn Zone Pricing definition in marketing with explanation to study “What is Zone Pricing”. Study zone pricing explanation with marketing terms to review marketing course for online MBA programs.

Zone Pricing Definition:

  • A geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong

Zone Pricing Explanation:

Zone Pricing is a valuing technique where all clients inside a characterized zone or area are charged a similar cost. Also, more far off clients pay a more expensive rate than those closer to the organization's dispatch point. It is additionally called various zone evaluating. Costs increment as delivery separations increment. This is in some cases done by drawing concentric circles on a guide with the plant or distribution center at the inside and each circle characterizing the limit of a value zone. Rather than utilizing circles, sporadically formed value limits can be drawn that reflect geology, populace thickness, transportation foundation, and delivery cost. The expression "zone estimating" can likewise allude to the act of setting costs that reflect nearby aggressive conditions, i.e., the market powers of free market activity, as opposed to real cost of transportation.

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