Which of the Different Product Mix Pricing Strategies Discussed in the Text Applies Best to Payless's New Strategy? Discuss in Detail.

Flight Centre is Found by Graham Turner in 1981, its first store open in Sydney, increases day by day, Now they 2500 worldwide stores which operate Australia, USA, India, China, New Zealand, Hong Kong, South Africa etc. They are first ever decline in the profit year 2005. More where stores available in all prime location near to all amenities and public can reach their easily.

The company tries to establish a new approach to engage with their customers, and the price needs to reflect that. Customers do not pay the premium price for the jeans, but rather for the lifestyle that those products reflect.

Thirdly, option is to strategically adjust the prices of their products because consumers are often very price sensitive. By doing so the company can either create more value that defines the quality and quantity of the product.

What type of strategy consists of geographical pricing, price discounts and allowances, promotional pricing, and differentiated pricing

Because CVS must consider several factors affecting its business, such as: suppliers, consumer demands, competitors and their existing products, pricing strategies are complex. Options for pricing strategies may include: membership or trade pricing, geographical pricing, penetration pricing, product bundle pricing, discounts, and closeouts. Options for non-pricing strategies include:

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

Cost-plus pricing lead to a complicated pricing structures, since distributors and customers negotiated separate product prices from manufacturers, introduced incentives, let prices vary from customer to customer, covered some products by contract and some don’t etc.

Price Strategy: The current pricing is set in place to make it easy to know how much our footwear is going to be based on the performance level the customer has chosen. By only having 6 total prices it makes it very easy to keep sticker shock to a minimum and our customers can feel comfortable

CVS needs to think through numerous elements impacting its’ business. Pricing strategies, rivals and their current products, consumer demands and suppliers are examples of these elements. For pricing strategies, CVS should consider closeouts, discounts, product bundle pricing, penetration pricing, geographical pricing, and membership or trade pricing.   For non-pricing strategies, options comprise: enhanced service quality, longer opening hours, advertising, and extended warranties (Kimmons, n.d.). By pricing similar products in a different way they must focus on regional demographics because geographic pricing enables the maximization of profit. For promoting unique or new products at provisional price drops, penetration pricing is the most effective.   Finally, bundle pricing and closeouts can be engaged when several

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.

Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.

The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.

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)

The markets today are so complex and deal with so many variables it can be difficult to understand just exactly how they operate. In the following I will reveal the different kinds of market structures along with their different pricing strategies. Relating to these topics, I will focus on the importance of cost, competition and customer.

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).