Economy pricing is set for a certain time when the company does not spend more on promoting the product and service. The Pricing Strategies of these products are considered as no low frill prices where the promotion and the marketing cost of a product are kept to a minimum. Similarly, when companies want to promote a premier product or service, they raise the prices of the products and services for that particular time. Similarly, few companies keep their product cost low as their introductory offer is a way of introducing themselves to the market and creating a consumer base. This gives the companies a start and a consumer base. Similarly, Sky TV gave away its satellite dishes for free in order to set up a market for them. For example, France Telecom gave away free telephone connections to consumers in order to grab or acquire the maximum number of consumers in a given market. This strategy is used by companies only in order to set up their customer base in a particular market. Some companies either provide a few services for free or keep a low price for their products for a limited period, that is, for a few months. Penetration Pricing or Pricing to Gain Market ShareĪ few companies adopt these strategies in order to enter the market and gain market share. ![]() Pricing Strategies in Marketingįollowing are the different pricing strategies in marketing: 1. The correct strategy will help you attain your objectives as an organization. However, to maximize profits and retain your consumer, you must make sure you choose the right pricing strategy. Understanding the market conditions and the consumers’ unmet desires, along with the price that the consumer is willing to pay to fulfill his unmet desires, is the ultimate way of gaining success in the pricing strategy of a product or a service.ĭo not forget the company’s ultimate goal is to maximize profit by being in competition and sustaining the competitive market. ![]() This strategy is one of the most significant ingredients of the marketing mix because it focuses on generating and increasing revenue for an organization, ultimately making a profit for the company. ![]() This strategy is combined with the other marketing pricing strategies: the 4P strategy (products, price, place, and promotion), economic patterns, competition, market demand, and product characteristics. The main aim of the management of every organization is to maximize profits by effectively getting the products off the shelf let’s define and explain this better.Ī pricing strategy is finding a competitive price for a product or a service.
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