Pricing Strategies Free Essay Example - StudyMoose.
Marketing mix refers to determining which elements of the product are necessary for successful selling. You need to do extensive customer research in building a good marketing mix. Knowing your competitors and your target market will give you an idea on coming up with a product that appeals to customers. Know your product strategy, as well as your pricing strategy, distribution strategy and.
Pricing strategies can vary from offering relatively stable prices across a wide range of products, which is known as Everyday Low Pricing (EDLP) or Promotional Pricing (PROMO) which involves emphasising deep and frequent discounts on smaller sets of goods (Ellickson and Misra, 2008). The EDLP store adopts a constant everyday low prices across a wide range of product categories, whereas PROMO.
A product strategy is the foundation of a product life cycle and the execution plan for further development. The product strategy allows the business to zero in on specific target audiences and.
Pricing strategy in marketing is the pursuit of identifying the optimum price for a product. This strategy is combined with the other marketing principles known as the four P's (product, place.
As we know the marketing mix (made up of product, price, place and promotion) is the perfect combination of elements you need to get right for effective marketing. Pricing is one of the most important elements of the marketing mix, as it is the only element of the marketing mix, which generates a turnover for the organisation.
Companies use many different pricing strategies and price adjustments. However, the price must generate enough revenues to cover costs in order for the product to be profitable. Cost-plus pricing, odd-even pricing, prestige pricing, price bundling, sealed bid pricing, going-rate pricing, and captive pricing are just a few of the strategies used. Organizations must also decide what their.
There are a number of pricing strategies that you can follow. Some strategies may call for complex computation methods and others are intuitive decisions. Select a pricing strategy that’s based on the product itself, competitive environment, customer demand, and other products that you offer. Cost Plus. Cost Plus is taking the production cost and adding a certain profit percentage. The.