Pricing Strategies That Exist And Are Used By Enterprises Essay

And the customer are sensitive to the price since those products are using only few times and need to be change all the time.

Prices in a market economy are very important. Price allows us to give out goods appropriately to those who are able to pay.

Price is the cash expenditure plus taxes that consumers have to pay for a good or service.

Pricing is a pertinent issue in procurement and acquisition in organizations. Consumers buying the commodities of an entity should get clarity on pricing related issues. There is uncertainty in Pro

Competition within the industry as well as market supply and demand conditions set the price of products sold.

When trying to determine the correct price, a number of factors must be considered: the market and its segments, the size of each segment, the ability to reach each segment, what distribution channels to target, whether to vary price by segment, the usefulness of promotional offerings, and whether the goal is to skim or penetrate each market.

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 Internet has changed and will continue to change how people shop and new competition through the Internet will continue to shape the market.

Competition within the industry as well as market supply and demand conditions set the price of products sold.

This is where you are able to determine the price with your suppliers. This can happen if there are a large amount of suppliers and you are buying in bulk. This may force suppliers into a price war.

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

Keeping these realities in mind, it is very much obvious that for this market, we choose and follow a value based pricing and do not keep the price of the product too high. It is advisable rather to follow an average pricing and let the consumers build some enthusiasm around the product.

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).

Price – Price is also important because company should set the price according to the quality of their product and to achieve the target of sales they must set the price which can beat all of their competitors who are selling the similar products. Customer must get the value for his money.