Pricing Strategies - Dell

2096 Words May 11th, 2008 9 Pages
1. Introduction

Pricing strategies usually change as the product passes through its life cycle, because there is constrains on the company’s freedom to price a product at different stage. The purpose of this report is to determine and elaborate the elements in pricing strategies of Dell’s notebook.

2. Key Objectives Price is the amount of money changed for a product or service, or the sum of the values consumers exchange for the benefits of having or using the product or service (Kotler et al., 2003, p.332). Historically, prices were determined through bargaining or negotiations between buyers and sellers. Different prices were set based on the buyer needs and bargaining skill. The establishment of one price for every
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About all Dell's advertising, show the purpose and no more than the selling price with outstanding focal point most, or favorable range , still prove adding within a definite time period.

b).Adopting the competitive price strategy

Secondly, Dell adopting the competitive price strategy, namely not the blind entering the market at a low price, but different from the customer according to the rival, market conditions, make different competitiveness prices separately. For example;
On the webpage that is set up for the small business specially, the note-book computer pricing of a Latitude l400 is $2307, on the webpage that is set up for health care enterprises specially; its price is $2228, cheaper by 3% than that of the price displayed on the web, while the price offered to the government is $2072. In actual sale, it can also follow the rival and market situation , adjust the price at any time, even can change the price two times in one day, and the purpose is for keeping the long-term advantage at this kind of price.

c).The third characteristic

The third characteristic of Dell’s offers free appreciation service with the thorough after-sale service. For example; DELL stipulates that can upgrade the hard disk, get the sharp alliance Z605 printer free while buying and appointing the model, obtain value RMB620 big gift bag of free, upgrade the liquid crystal display and wait at the preferential prices, these very practical

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