Pricing Strategies : Wal Mart Become The World 's Largest Retail Chain

Good Essays

Introduction on Pricing Strategies
As we all think at times and ask ourselves, how did Wal-Mart become the world’s largest retail chain? Or why is Apple the most valuable technology company even with high priced products? First companies have to understand their market and strategies according to its demand and income level, regardless of whether they intend to offer their products at a low-price or high price. What do you think of when you hear the words “Pricing Strategy”? One of the four major elements of the marketing mix is pricing. A pricing strategy refers to the method companies used to price their products or services. Pricing strategy being with a market analysis of what the ideal product price for a given product of service should be. Either if the business is small or large, they base their products or services on production, labor worked, and advertising expenses. Once these prices and totals are established they then add on a certain percentage to generate a profit. When dealing with pricing strategies it tends to be one of the most critical components of the marketing mix. It cost to produce and design a certain product, and it cost to distribute a product and cost to produce it. When a company chooses a pricing strategy they dramatically impacts the profit margin of their business, and it also determines the pace at which the business can grow.
Why does the price of a product change?
Companies need to make changes to improve their bottom line

Get Access
Get Access