Value Pricing Strategy Of Marketing

The product strategy ranges from brand name to product image to package design to service to guarantee to product development and more; pricing strategy must allow your prices to be fair relative to the benefits of your product and must factor in competition; distribution is the goal to deliver your product to the right people in the right quantities, at the right time and the right place; and promotion strategy includes all the ways that marketers communicate about their products.

The key to successful pricing is to match the product with the consumer's perception of value.

Price is defined as the amount of money charged for a product or service. In marketing terms, price is considered to be the sum of the values that consumers exchange for the benefits of having and using the product or service. Price is also the only element in the marketing mix that produces revenue—product, place, and promotion are all costs. There are three forms of pricing strategies: customer value-based, cost-based, and competition-based pricing. Customer value-based pricing uses buyers’ perceptions of value to set price and are also used to set the price ceiling for the product. Cost-based pricing uses the costs of producing, selling, and distributing products plus a fair markup for pricing. The cost of the product also sets a price floor. A competition-based pricing is one based on competitors’ strategies and prices and can help the company determine what kind of positioning it wants to take based on how it wants to compete, “such as becoming a price leader, offering the highest quality, or becoming a luxury brand”. (wiseGEEK, 2015)

A marketing strategy is the combination of the target market, or the customers the marketing is intended to reach, and the marketing mix. Product, price, place, and promotion are components of the marketing mix, or the four p’s, which create a value for the customer (Perreault, Cannon, & McCarthy, 2009). For this reason, the customer, who is not part of the marketing mix, is the center of the target, surrounded by the elements of the marketing mix. The ultimate goal of a marketing strategy is to create value for the customer, which allows the organization to increase customer satisfaction and results in repeat customers and additional equity for the organization (Armstrong &

A successful marketing strategy will help a company to find out the trend and goals for its marketing. A strategy must elaborate how a company is going to present its products or  services in ways that will satisfy a company’s consumer. The marketing strategies of Four Seasons are the following:

Marketing strategies are focused on the customer, and a business has to choose which customers to target. Your product will not be needed by everyone. You will have to figure out which segments of the market to pursue. There is a huge market for home repair, including professional carpenters and builders. Home Depot’s competitive advantage would not be strong in the market segment composed of professionals, in which the distribution channels are strong and well established.

There are five components within a well- developed strategy. Market segments its competition when it plans to enter. Decisions about an organization’s strategic plan should focus on management’s view of the company’s mission or vision. Its various activities define the essential nature of what the company is should be like. A marketing strategy is composed of several related elements. Businesses are created from creativity and ideas. Many new business plans fail, because there is lack of execution. You need to execute in all areas of your business. Implementing and executing the chosen strategy and evaluating performance all involve marketing and

The focus of this topic is the main elements involved in the development and implementation of successful marketing strategies.

SUMMARY OF CH.10 Pricing strategies: Price: is an amount of money that the consumer is paying for a product or a service. Costumer value-based pricing: to determine the price of product or service we have to consider the customer expectations of the value not the seller’s cost. Good-value pricing means the balance between good quality and service, decent price for both the customer and the company in order for it to gain profit.

However, while costs are important in setting your prices, don 't limit your thinking only to cost-based pricing. Value-based pricing makes you think about your business from the customer 's perspective. If the customer doesn 't perceive value worth paying for at a price that offers you a fair profit, you need to re-think your game-plan. (Allen, 2012)

Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in

In terms of theory, pricing strategies can be defined as businesses choosing one method to appeal to customers to purchase goods and achieve marketing mix according to the assessment of consumer demand and cost analysis (BDS Forum, 2009). For a company, pricing strategies can be made difficultly. If prices of goods are too higher, they may lose market share. If the price is two lower, the company cannot get bigger profit (Bized, 2006). Therefore, before developing a pricing strategy, the company has to consider much more factors. Such as pricing objectives which rely on production cost, barriers to entry, rate of product diffusion and so on, pricing methods including cost-plus pricing, target return pricing, value-based pricing and psychological pricing as well as other factors to make the best price for the firm and the consumer (Net MBA, 2009). Three points of views of pricing strategies can be discussed in the following in this report. Firstly, pricing strategies should

Value pricing is used where external factors such as recession or increased competition force companies to provide ‘value’ products and services to retain sales.” The

Every organization needs to have a marketing strategy so that they know who are their competitors, which market they need to target, do they have resources to compete in that market and what strategies they need to adopt to gain competitive position in the industry. The most important thing is with the help of marketing, company is able to make people aware of its product.

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.