Pricing: An Important Marketing Strategy

The pricing strategy for Crystal Light Kicks will eventually be in line with current pricing of other Crystal Light products as the Crystal Light brand is already in existence. Current Crystal Light pricing is at a suggested retail price of $2.56 oz for a 1.4 oz package ($3.54) that includes 10 on the go packets and $1.25 oz for a 3.2 oz canister which can make a 12 quart pitcher ($4.00) according to Pea Pod by Giant supermarket (Peapod.com). The initial pricing strategy for Crystal Light Kicks will take a penetration pricing strategy to introduce the product to assist in

Pricing is an important factor that determines retailers' profitability. Among many success stories, the airline industry is regarded as one prominent example in which pricing optimization techniques have successfully resulted in increased revenues \citep{Phillips:05}. Other examples include electricity pricing, hotels and rental cars, etc. According to \cite{Sullivan:05}, companies that employ price optimization technique were able to raise their gross margin ranging from one percent to three percent, and in some cases up to ten percent. \cite{Elmaghraby:03} point out the availability of customer data along with decision support tools for analyzing such data as well as new technologies that make price changes easy as the driver for the development of dynamic pricing strategies. %Such strategies change prices as a function of both inventory level and time remaining, allowing the sellers to maximize potential profit with sophisticated price model and to eliminate excess inventory quickly in response to higher inventory levels.

The importance of price has been ignored until recent years, since then, many researches have been done in order to show the relationship between the price and customer satisfaction.

Managers are faced with making pricing decisions every day. They are responsible for coming up with how much to charge for a product or service. This amount depends on a multitude of factors such as competition, cost, advertising, and sales promotion. The best price for a product or service is the one that maximizes the difference between total revenue and total costs. However, in reality, the price charged is usually some form of cost-plus, which is later adjusted for market conditions and competition. Some of the different pricing decision methods are cost plus pricing, target costing, and activity based pricing.

In this essay I will asses the key points that influence the pricing of products and how businesses use certain methods to price their products to get the beneficial profits for the company. These include, target pricing, cost based pricing, penetration pricing and skimming. I will furthermore calculate the Break even point for Alpha and consider whether the pricing method used is necessarily the best option for their product and advise them on which method would be best suited for them.

Pricing is one of the important elements of the markets mix, which generate a turnover for the organization and must reflect supply and demand relationship. Pricing a product too high or too low could mean a loss of sales

Factor the product life cycle of your products into your business-plan marketing strategy. All products go through various stages: Introduction, growth, maturity and decline. Products can become outmoded because of new technology. Project when you expect products to enter the maturity stage, where competition can be fierce. Use your secondary research and competitive analyses to project various

• Pricing of a product is extremely crucial for a business because “the price of your product can either break or make your business”[i]

In this paper, we address the issue of pricing strategies that exist and are used by enterprises, whether industry, retailers or wholesalers. The price is the only element of marketing can generate revenue, the rest ends up generating costs that are incorporated into the final product price. It is also one of the flexible elements, therefore, can be changed quickly adapting according to the needs. It is also one of those responsible for the occurrence of the relationship between company and consumer, after all, an attractive price is able to attract more consumers.

“Pricing is the moment of truth” (Stottinger,2001). Probably this affirmation is essentially valid in domestic marketing, even more in international marketing. Surprisingly, the literature in this area is characterized by a gapthere is a gap in the literature in this area.

At the beginning, focusing on production in the USA allows us access to qualified staff. But it gradually became an economic burden. During these four rounds, we never changed the addresses of factories or replaced labour force. In reality, the rent of factories and the labour cost are quite distinct in different areas at different times. So our company suffered huge losses.

The marketing strategy pursued by a company is dictated by many factors, including size, product category, competition, and organizational structure. Strategy as defined in the text is “a planned set of actions employed to make best use of a companies core competencies to gain a competitive advantage”. (1) Implementing a successful internationalization business strategy is not confined to large MNEs, increasingly small to medium enterprises find them selves operating in a global market. A business must clearly understand the value added by its product or service to capitalize on their competitive advantage globally. It is useful to consider the internationalization-responsiveness (IR) framework when discussing the key differences between global, multidomestic and transnational strategies. (2) The framework compares the strengths and weaknesses of each strategy relative to the goal of global integration or local responsiveness. In terms of the IR framework a global strategy emphasizes global efficiency, multidomestic strategy emphasizes the local market and a transnational strategy balances both end goals.

Retailers purchase products from wholesalers, and sell products and services directly to their customer, therefore it is important that their pricing and retail strategy is perceived valuable by their target consumer market. Understanding what their customers want, when they want it, and how much they are willing to pay for it are key data points for marketing managers when determining strategy. When pricing and retail strategies coincide and portray value, the target consumer market positively responds.

The article is written to identify the many strategies that are used for pricing. The article argues that products will always have competition, creating pricing strategies and setting pricing to align with peak market control will allow the firm to obtain the highest profit levels. It outlines pricing through all stages from the product creation, maintaining products on the market, what to do when encountering market competition, going on the defense, price attacking the competition, and when to modify pricing. It provides insight on pricing in bulk, pricing through low margin on sales items, but high profits on necessary companion item, pricing strategies to help

For decision-making purposes, product cost information is one of the most important inputs for pricing decisions or product-mix decisions. Organisations that sell highly customized or differentiated products or services, or who lead the market, have some choice in setting their selling prices. The pricing decisions can be influenced by the cost of the product. Other organisations have their selling prices set up by the market as they only have little or no power over the selling prices of their products. However, cost information is still considerably important for