Pricing Strategy Essay

572 Words Aug 7th, 2012 3 Pages
Appropriate Price Strategy Price strategy is an essential and most vital element that is involved in the marketing process. Pricing a product to low would affect the bottom line negatively. On the other hand if the price of a good or service is too high, then nobody will purchase them. The key is to research and compare all available pricing strategies and choose which the best one for a particular situation. Prices have always been the center of human interaction ever since traders have been in existence. It should come to no surprise that all companies in different industries spend countless time figuring out how to price their products and services competitively. Examining factors that may impact the development of our marketing …show more content…
The demand curve is the relationship Demand curve is defined as "the relationship between the price of the good and the amount or quantity the consumer is willing and able to purchase in a specified time period, given constant levels of the other determinants," according to the UNO Center for Economic Education. In other words, you must determine how likely the average customer within your target market is to purchase your specific product at a given price. This is typically accomplished through the use of an equation in which quantity = a - (b x price). The calculation of the cost that is associated with manufacturing and distributing the Eaton tablet in which includes the cost of labor and overhead in addition to the fixed and variable cost that is included with the manufacturing of the Eaton tablet. With this an evaluation of external factors which can be impacted the ability to sell the tablet. Using an analysis such as PEST analysis, which consist of political, economic, social and technological factors which may impact the organization can be a tool that may be useful when evaluating these factors. Identifying the pricing objective, and being specific to the goal of pricing strategy. Choosing either being a premium or an economy price would simply offer better services at the same price as competitors. With this strategy, being able to find the appropriate price for the Eaton tablet can be made easy as long as the study of current trends and…

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