Major Pricing Strategies

Pricing Objectives involve specifying the role of price in an organization’s marketing and strategic plans. These

Your paper discussed the importance of pricing to a company's strategic position in the marketplace. The different considerations in the pricing strategies were also explored. You described good value pricing and the concept of loss leader as one of Wal-Mart's strategies.

Pricing is one of the most important elements of the marketing mix for the MARC. It is the only one of the components that generates revenue, while promotion, place, and product generate cost. Producing, designing, distributing, and promoting products come with expenses.

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

Pricing is a pertinent issue in procurement and acquisition in organizations. Consumers buying the commodities of an entity should get clarity on pricing related issues. There is uncertainty in Pro

Pricing is the most important aspect of the marketing mix. Price is the only element of the marketing mix, which produces a turnover for the organization. Pricing plays a crucial role in the product consumption. Pricing products too high or low results in loss of sales for the company. The pricing of each organization based on its corporative objective.

Internal factors are establishing prices and marketers ought to take into consideration the importance and significance of a number of factors which is the outcome of the organizations choices, results, and actions. These factors are manageable by the organization and they may be modified, if need be. In spite of this, making a swift transformation is not always the answer or the quick fix. For example, product pricing is determined or influenced by the productivity of an industrial facility. The salesperson realizes that rising productivity can decrease of expense of manufacturing every product and therefore lets the salesperson to possibly reduce the price. External factors are not managed by the organization but then again it will influence the choices of pricing. Being able to better comprehend these factors would entail the marketer conduct research to observe and evaluate everything that is going on in all of the markets that the organization works for because of the influences of these factors can differ within the market (Factors Affecting Pricing Decision, 2016). External forces that can impact the organization are unmanageable because the organization does not manage them however, the organization can still take action and adjust to their occurrences and effects with the organizations manageable blend of components from the organizations internal setting. The unmanageable influences in the external setting are rivalry, governmental policies and plan, natural influences, social and cultural influences, demographic determinants, and changes within technology (Bright,

The pricing process is dependent upon factors which can be categorized as internal and external factors. The internal factors include the factors that are within the control of the organization or the producer, whereas the external factors are influenced by the market or factors which are beyond the control of the producer.

Describe and give examples of some of the following types of pricing objectives: profit, market share, competitive effect, customer satisfaction, and image enhancements.

Today’s highly competitive business world forces companies to create different tactics and relatively rely on multiple pricing strategies to conduct business.

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.

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.

Price interacts with all other elements of the marketing mix to determine the effectiveness of each and of the whole. The objectives that guide pricing strategy should be a subset of the objectives that guide overall marketing strategy. Thus, it is probably wrong to view price as an independent element of marketing strategy or to assert that price, by itself, is a central element in the marketing mix.” (Webster, 1979)

The markets today are so complex and deal with so many variables it can be difficult to understand just exactly how they operate. In the following I will reveal the different kinds of market structures along with their different pricing strategies. Relating to these topics, I will focus on the importance of cost, competition and customer.

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).