Essay Marketing Pricing Strategy

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

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.

The price strategy defines the initial, base price and the appropriate strategy depends on the pricing objectives. There are three basic pricing strategies for pricing a product or service: price skimming, penetration pricing and status quo pricing. Effective marketing involves the price being set to equal the perceived value of the product, a backpack, to the target market, university students. The following sections discuss the alternative pricing strategies, the advantages and disadvantages of these and the most appropriate strategy for a new backpack entering the market.

As the customers has good value of the product, the company has more pricing values.

Premium pricing, also known as “image pricing” or “prestige pricing,” means pricing a product above normal market value so that customers think a product or service is more valuable than similar offerings. Although the price may dissuade some buyers, premium pricing proponents believe that the higher cost will create a market perception that will ultimately bring in more revenue (Maguire, n.d.)

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.

However, due to the rising competition and growing innovative efforts, a pricing strategy may need to be revised at some point to assure customer affordability and maintain customer loyalty. Quality is firmly identified with return. Low quality items and benefit decreases consumer loyalty and prompts to regular returns, while great items and administration can fulfill the client and lessen the quantity of profits. In the meantime, top notch items and administration merit high offering costs in light of the fact that higher costs flag better quality (Li, Xu, & Li,

By charging a high price initially the company can build high quality image for its products. Charging high prices will give Augustine Medical the option of lowering its prices when heavy competition arrives. This strategy would also be advantageous to the company upon its initial entry to the market because it will allow the company to regain profit margins from the funds paid to distributors and other intermediaries.

This paper is to explain some of the role in the Pricing Strategies and the Marketing Channels

1,2- The first two questions will be gone through together in order to avoid confusion. Pricing is one of the most important elements to launch a product on the market. Mainly, because it is the only element, together with the marketing mix, that produces revenues. It is fundamental to set the right strategy in deciding and setting the price of a certain product to be sure that is fully understood and appreciated by customers in all its aspects and characteristics. A suggestion to rightly start the pricing strategy would be to follow a value based strategy, in order to understand what mostly consumers want and what price they would like to spend for that type of quality. It is the reverse process of the

​Have you ever wondered why do prices end with .99 or why it is that business are always making some kind of deal? Are these deals as beneficial as the customer thinks they are? What about the items priced higher than usually. Most people tend to think the higher the price the better quality right? Well, these are some of the topics this paper is going to help you better understand. Price points, Prestige Pricing, and Odd-evening pricing are all common price games used in the business world today. Price points are the different prices stores use to manipulate the consumers into buying what they want them to buy. I am sure everyone has wondered exactly what goes into the pricing of the items they purchase or what is it about these deals

Pricing is very important because it is the only element that generates a turnover for the organization. Price supports the remaining P’s, as they are the variable cost. Pricing is difficult as it must follow the laws of supply and demand. However, the pricing response of competitors must be taken into consideration when

Leadership of entire business organizations are considered with sustaining a reasonable percentage of the market share to lead their firm compete, maintain, prosper, and profit in the marketplace. Thus pricing tactic is a critical aspect in creating and maintaining market share. In order to attract sales and increase an appropriate share in the market, product pricing must be a reasonable set that allow consumers purchase regularly in significant numbers. According to Perreault et al. (2015), many business executives focus to grow their business market share in a long term.

1. Premium pricing-usually above the high of its segment. For example, something unique like car Ferrari.

Companies use plenty of various strategies in order to capture more customers compared to the competitors. The use of different pricing strategies are nowadays the most common ones in order to get an advantage over the competitors (Rao, Bergen, & Davis, 2000). Setting a certain pricing strategy may lead to a competitor’s reaction such as price cuts, different advertisement or even a completely new innovation. Consequently, price cuts can potentially cause a price war between companies, which will be elaborated on in the following.