Pricing Strategy

7408 Words30 Pages
[pic] [pic]

TABLE OF CONTENTS

TOPICS PAGE

INTRODUCTION ………………………………………………………………..3

PRICING INTRODUCTION …………………………………………………… 3-4

IMPORTANCE OF PRICING …………………………………………………….4-5

SOME OF THE MORE COMMON OBJECTIVES OF PRICING………………..5-6

FACTORES EFFECTING DEMAND……………………………………………. 6-7

SETTING PRICING POLICY …………………………………………………… 7-11

PRICING INFLUENCES ON PRICING POLICY……………………………….. 12

PRODUCT PRICING STRATEGY ……………………………………………… 13-17

NEW PRODUCT PRICING STRATEGIES …………………………………….. 13-17

PRODUCT MIX PRICING STRATEGIES ……………………………………… 13-17

PRICE ADJUSTMENT STRATEGIES
…show more content…
In general, a products perceived value may be increased in one of two ways – either by:
(1) Increasing the benefits that the product will deliver, or,
(2) Reducing the cost.
For consumers, the PRICE of a product is the most obvious indicator of cost - hence the need to get product pricing right.

IMPORTANCE OF PRICING

When marketers talk about what they do as part of their responsibilities for marketing products, the tasks associated with setting price are often not at the top of the list. Marketers are much more likely to discuss their activities related to promotion, product development, market research and other tasks that are viewed as the more interesting and exciting parts of the job.
Yet pricing decisions can have important consequences for the marketing organization and the attention given by the marketer to pricing is just as important as the attention given to more recognizable marketing activities. Some reasons pricing is important include: • Most Flexible Marketing Mix Variable – For marketers price is the most adjustable of all marketing decisions. Unlike product and distribution decisions, which can take months or years to change, or some forms of promotion which can be time consuming to

More about Pricing Strategy

Get Access