Increasing Product Price And Implementing Successful Pricing Strategies

The next P of marketing the paper shall address is price. Successful marketing includes marketing the right product to the right audience at the right price. If the marketing professional knows the target consumer very well, then he/she will be in a strong position to predict and assign a price to such a product. Knowing the target demographic for a new product must include financial and class information as people of different classes have different tastes, different needs, different aesthetic preferences, and different kinds of access to products. (Vargo & Lusch, 2004)

Swing Manufacturing and Steady Manufacturing both operate in the widget industry, but with radically different cost structures. Swing is a capital-intensive, automated manufacturer, while Steady is a labor-intensive "job-shop." Monthly operating data are as follows:

The setting of ‘fair’ prices to consumers: the company should bear in mind that customers nowadays will shop around to compare the intended products and services. However for the business survival and growth purposes, the company should also maintain its profit margins to ensure its business growth and expansion. The company needs to consider its cost factors and business operation areas to reduce or minimise the costing areas.

Will raising the price of a product help the bottom line of the company in the long run? It might, if the customer is satisfied with that product, or if the processes involved with creating that product make the product of a higher quality (Bowen, 2011).

The experts warned that clients may like to hunt for deep discounts. From a financial perspective, when we compare the revenues between the first semester of 2011 and the first semester of 2012, we see that they are dropping by a significant 21% for the benefit of competitors. The operating margin is hurt considerably as well, which means that the pricing strategy and the repositioning of the brand is not working for the moment and customers are not behaving as Ron Johnson expected, and very probably the situation would persist unless the management acknowledge that adjustments are required to make the strategy and its implementation a driver of growth on the top

An analysis is done on how the customer perceives the company’s products in comparison to the competitors’ products. Based on this understanding and the competitors’ prices the pricing is done.

The prices should reflect what a consumer is willing to pay. For an example, the EPI pens, which is a life saving device for many people with severe allergies including myself. The public and many politicians have recently been outraged by the high cost of the Epi-Pens. Contemplate in purchasing one for myself because, of the marked-up price of the Epi-pens, and since it has been rise about 25% per year for nearly a decade. Even though the officially is offering a generic brand one that would lower the price and, one might expected it to be at an affordable drug to all consumers. The fact is, people are refusing to buy them at their new prices, although many people are at risk of being without a life saving drug. But the, demand is designed

The emergence of high-low pricing tactics materialized out of an earnest desire to retain a profitable margin of sales. Usually, this pricing strategy involves a period of high, often subjective, initial prices followed by a period of low discount prices. One can attribute the effectiveness of using the

Keeping these realities in mind, it is very much obvious that for this market, we choose and follow a value based pricing and do not keep the price of the product too high. It is advisable rather to follow an average pricing and let the consumers build some enthusiasm around the product.

* Current price of the product is really very high as compared to the market. Change in the pricing strategy would be better as the price compared to the other competitors is three times higher. Lowering the prices will attract more consumers. The pricing of the product should be reconsidered without effecting or compromising on the quality of the product.

Pricing strategy refers to the steps taken by a company to determine the optimal price for a product. Among the four Ps, pricing strategy is unique in that it is the only one that generates cash turnover for the firm, the other three are expenses (Learnmarketing.net, n.d.). Pricing strategy also has a significant impact on positioning strategy, as price has a great impact on how the consumer will perceive the product. For example, different pricing strategies for two similar goods can affect whether one brand is seen as a premium product over another.

“It is logical to assume that a firm wishing to sell more goods or service will drop its price. At a lower price, the quantity demanded by consumers will increase” (James & Keith, 2008, p. 139). On the other hand, non-price competition is the strategy in which company uses to increase its market share by offering such quality of goods or service, customer focus, or other sustainable competitive benefit other than price. This strategy is such brand management, advertising, or sales promotion (Brue & McConnell, 2002).

Today we can see multiple channels of retailers who are engaged in pricing products very competitively so as to capture maximum market share. Online stores and mobile apps are going one length ahead in providing discounts to customers. The traditional supermarkets have not stayed back in the race and have started offering discounts online which can be collected in their nearby stores as well as in store to keep with the fast paced competition. Many retailers have engaged into providing variant products of the same product type in their stores with reduced rates. It therefore becomes apparent to look into the impact of such pricing on the overall sales in the

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).

When marketers talk about what they do as part of their responsibilities for marketing products, the tasks associated with setting price are often not at the top of the list. Marketers are much more likely to discuss their activities related to promotion, product development, market research and other tasks that are viewed as the more interesting and exciting parts of the job.