As an Amazon Associate I earn from qualifying purchases.

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.

Keep Learning Marketing Explanations

What is Price Elasticity?

Value flexibility is utilized by financial specialists to see how supply or request changes given changes in cost to comprehend ...

What is Value-Delivery System?

Regardless of whether you are working in a business association or a processing plant or a R&D lab, you are ...

What is Ordering Ease?

Requesting simplicity alludes to how simple it is for the client to submit a request with the organization. Baxter Healthcare ...

What is Telephone Marketing?

Numerous organizations use phone advertising to speak with their clients. Any firm that sells direct for the most part handles ...

What is Product Mix?

Item blend, otherwise called item variety, alludes to the complete number of product offerings an organization offers to its clients. ...

What is Negative Demand?

Negative interest is a kind of interest which is made if the item is disdained when all is said in ...