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PRINCIPLES OF FREIGHT PRICING K. SIVA PRASAD CHIEF PASSENGER TRAFFIC MANAGER SOUTH CENTRAL RAILWAY INDIA 05-02-2014 K. SIVA PRASAD 1 Road Map – Lecture Outline Cost of Classification Why Price Service of Goods Value PRINCIPLES of Freight Indian OF FREIGHT Service Structure Railway Act PRICING What Traffic Can Bear? Indian Railways Examples Price Elasticity Telescopic Rates Discussions 05-02-2014 K. SIVA PRASAD 2 Four “P”s of Marketing Mix* PRODUCT PRICE {Variety Quality List Price Design Features Discounts Brand Name Allowances Packaging Target Payment period Services} Credit Terms customers Intended positioning PROMOTION PLACE Coverage channels Advertising Assortments Personal Selling Locations Sales Promotion Inventory Public Relations Transportation Logistics *Principles of Marketing, Philip Kotler & Gary Armstrong 05-02-2014 K. SIVA PRASAD 3 Railways : Special Features Railway Lines -across Length & Breadth of the Country Hundreds of Stations Multiple Services / Classes : Freight, Passengers, Luggage, Parcels, Railway Mail Rail Transportation : “Perishable” Capital Intensive – Long Gestation Periods Suitable Manpower 05-02-2014 K. SIVA PRASAD 4
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