Essay Marketing Pricing Strategy

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Pricing Strategy

Today’s highly competitive business world forces companies to create different tactics and relatively rely on multiple pricing strategies to conduct business.
As is known, pricing is one of the most important steps for business plan which needs good research, calculations and formulations. There are different pricing strategies to put into effect due to the market and product conditions, such as premium pricing, penetration pricing, economy pricing, price skimming(Voice Marketing, 2012). These four pricing strategies are main pricing policies. They form the bases for the exercise. However there are other important approaches to pricing. These pricing strategies are: Psychological pricing, product line
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Price skimming also is not suitable with Optima’s services. Optima’s pricing strategy is Premium pricing
The definition of Premium pricing strategy is, using a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries, free delivery-pick- up service, service quality, special chemical free products and prestigious presentation.
It is an example for “Price as a cue to quality” (Iacobucci, 2010, p. 112).When Optima’s customers experience the convenience of the service; they will gladly accept the higher prices. Related to Optima’s service and product quality, company implemented premium pricing with attractive promotion offers to support the higher price policy and make the prices more acceptable. This matrix categorizes and shows the relationship between quality and pricing strategies (Marketing Teacher). As mentioned above, because of The Optima’s high end service and product quality, while implementing premium pricing, company aims to reduce the prices slightly without effecting negatively its “high-end image” and company exerts different promotional offers to support the higher price policy and make the
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