Positioning a Product or Brand

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.

This is a strategy that can apply to products with consumable supplies. This is where the pricing at high prestige levels, otherwise they will not sell; customers equate higher quality with higher prices.

Companies can choose many ways to set prices, skimming price strategy where a company sets a higher price than normal and a penetrating price where low initial price is set. “Pricing

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 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.

This strategy guarantees that the company does not loose out on the venture by covering their fundamental costs of operation. This allows them to keep the price low enough to entice consumers while simultaneously hedging themselves from the risk of losing money on each item sold. This is basis for a market penetration strategy.

Market positioning is “a ranking of a brand, product, or company in terms of its sales volume relative to the sales volume of its competitors in the same market or industry.” (BusinessDictionary.com)

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.)

The second pricing strategy is the penetration pricing where the product enters newly into the market. To gain some consumer base from the competitors, the seller initially charges a lower price than the competitors. For example the ticket prices initially charged for IPL, Indian Premier League, matches were lower than the ticket price of the competition ICL matches. On the contrary, price skimming strategy is to grab the financially top class of the market and to do this, the seller charges high prices. The effectiveness of this strategy is based upon

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

The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.

Based on these 6 factors in setting a price: selecting the pricing objective, determining demand, estimating costs, analyzing competitors costs, prices and offers, selecting a pricing method and selecting the final price, Singapore GP Pte Ltd employed 2 different pricing strategies. They are

In that mapping Jaguar is my selected brand and main competitors are Mercedes and Audi. So, after reviewing that map it can be say that for this three specific brand there has same target customer. However, among those three brands Jaguar holds a moderate position that means they have sporty cars but not like the competitor. So, to get a better position jaguar has to reposition this brand. For that Jaguar have to identify competitor advantages that it do not have right now. In that mapping the market leader is Audi .That means they have different variety of sports cars and those cars are more expensive. Mercedes holds second position in that market that means they have more sports cars rather than Jaguar but not as many as Audi. However, there cars are not much expensive.

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)

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).