Analysis Of The Article ' Ending A Price Promotion '

Designing an appropriate pricing strategy is always a challenging task for most corporations, because price is a determinative factor of operating profits. Meanwhile, price can affect customer perceptions and product development. According to the basic economic theory, pricing policy should reflect the product’s costs and the relationship between supply and demand. In addition to the fundamental framework, price settle mechanism should take into consideration the underlying industry environment. For example, pricing in manufacturing is heavily cost-based with the certainty that the costs are fully covered. And conversely, in some particular sectors, there are downsides when price setting relies solely on the variable costs because of the high fixed cost. Based on this judgment, product providers should carry different pricing mechanism under different market conditions. Accordingly, pricing evolves from a purely academic topic related to the economic theories to a profits-maximising instrument involved with marketing practices. All these issues make the price setting problem more

In your own words, provide background information (two sentences) that sets up the purpose of the study. This information will likely be found in the Introduction.

The “Fair and Square” pricing strategy resonates well since it simplifies the price structure and offers great deals for customers, as well as a solution to stop the discount war to attract more customers. However, on the other hand, the design of the strategy does not rely on a deep understanding of customers’ needs but rather on assumptions about how customers are sickened by the current pricing system as it lacks transparency and integrity. JCP CEO, Ron Johnson, believed that he should not follow customers wants, but rather anticipate their needs, and as such he designed was he thought is going to be a successful plan. Even market researches were skipped and the company did not try to test the new price structure to

Research Challenge Identifying the optimal price for a new product is a critical step in the innovation process – and correcting the price of an existing product is a necessary component of successful brand management. With the wide range of pricing research techniques practiced in the industry, it is not always clear which technique best addresses the business issue at hand. This paper describes the most common methods used for consumer goods pricing research and offers guidelines on when – and when not

This chapter discusses the background, objectives, significance of the study, scope and limitations, data gathering process and the research design and methodology.

As we all think at times and ask ourselves, how did Wal-Mart become the world’s largest retail chain? Or why is Apple the most valuable technology company even with high priced products? First companies have to understand their market and strategies according to its demand and income level, regardless of whether they intend to offer their products at a low-price or high price. What do you think of when you hear the words “Pricing Strategy”? One of the four major elements of the marketing mix is pricing. A pricing strategy refers to the method companies used to price their products or services. Pricing strategy being with a market analysis of what the ideal product price for a given product of service should be. Either if the business is small or large, they base their products or services on production, labor worked, and advertising expenses. Once these prices and totals are established they then add on a certain percentage to generate a profit. When dealing with pricing strategies it tends to be one of the most critical components of the marketing mix. It cost to produce and design a certain product, and it cost to distribute a product and cost to produce it. When a company chooses a pricing strategy they dramatically impacts the profit margin of their business, and it also determines the pace at which the business can grow.

Some of Our competitors use this type of pricing strategy as well. Therefore, it will be illogical to use a low-cost strategy for our products and services when some our competitors use the premium price strategy. In addition, the products and services they offer aren’t of the same quality and value as ours and their profits aren’t inhibited. Due to the aforementioned considerations and specifics, this strategy is

In my essay, I will highlight price comparison theory in relation to a competitive market, where there is no monopoly, and how businesses set up and promote their various 'price comparison ' schemes in an attempt to achieve a competitive advantage. Also I will briefly explore how these schemes may influence buyer behaviours and if they have a positive or negative impact on society.

The primary objective of any business organization is to maximize the profits from its operations in order to enrich the wealth of its investors. This calls for provision of high quality goods or services at competitive and optimum prices which allow the company to make good returns while, at the same time, not exploiting their clients. As a result, businesses are forced to come up with good pricing strategies to achieve this. However, pricing strategies are different for businesses depending on the market structure in which they operate. Markets can be classified as perfect competition, monopolistic competition, oligopoly and monopoly. Each of these structures has different characteristics and conditions that call for different pricing

In this essay I will asses the key points that influence the pricing of products and how businesses use certain methods to price their products to get the beneficial profits for the company. These include, target pricing, cost based pricing, penetration pricing and skimming. I will furthermore calculate the Break even point for Alpha and consider whether the pricing method used is necessarily the best option for their product and advise them on which method would be best suited for them.

Pricing strategies can vary from offering relatively stable prices across a wide range of products, which is known as Everyday Low Pricing (EDLP) or Promotional Pricing (PROMO) which involves emphasising deep and frequent discounts on smaller sets of goods (Ellickson and Misra, 2008). The EDLP store adopts a constant everyday low prices across a wide range of product categories, whereas PROMO or Hi-Lo stores occasionally price a category at the regular price or at a deep discount (Bell and Lattin, 1998). Ellickson and Misra (2008) argue that the concept of choosing the best pricing strategy is a complex process as it forces firms to balance the preferences of their consumers, as well as taking into account their competitors performances in terms of the store pricing and market share.

A pricing strategy is important to any firm in realising its corporate objectives, whether that be its sales revenue, market share or indeed profit, and thus there is much preoccupation within a business about its pricing strategy. Ultimately, this will be guided by many factors; not least the market power it has to set the price of its products and the nature of the demand curve it faces. This essay will attempt to outline how a firm’s pricing strategy is influenced by the characteristics of the market in which it operates, looking at various market structures, including perfect competition, monopoly and oligopoly.

Supermarkets use their one-stop shopping, convenience and low prices to attract the consumer at all points and negotiate the best buying prices from suppliers. . Retailers use various pricing strategies to influence consumers’ price perceptions, assuming that they will impact choice. Three prominent retail pricing strategies are frequency discounting, where retailers offer frequent but small discounts; depth discounting, where retailers offer infrequent large discounts; and everyday low pricing (EDLP), where retailers offer products at a constant low regular price. A more fine-grained analysis suggests that consumers’ purchase decisions are driven by price perceptions rather than by actual prices. These perceptions are highly subjective and susceptible to contextual influences. (Danziger, Hadar and Morwitz 2014)

Profit maximization has since time immemorial been the ultimate goal of every business. This can be realized by increasing the sales volume. In order to achieve this goal, businesses may employ various different methods some of which are direct while others are indirect (Rizvi,Nazi & Malik,2011). Sales promotion is one of these methods and it is roughly defined as a diverse collection of effective incentive tools that are mainly used in the short term in order to stimulate a quicker as well as greater purchase of specific products or services by customers as noted by Kotler (1998). Advertisement expenditure grew by 4% between 2004 and 2005 in Singapore (Ang,2007). In this paper, we propose a research aimed at investigating the effectiveness of promotion activities in increasing sales at 7-Eleven stores in Singapore.

In this chapter, the background to the study is given, a statement of the research problem is made, the objectives of the study are spelt out, research questions are posed; the significance of the study captured, followed by the scope and limitations of the study; a brief research methodology is provided and the disposition/structure of the study outlined.