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Pricing Strategy

Evaluate the pricing strategies adopted by washing machines manufactures.   Prepare a table showing the salient aspects of each company. Gbvy8

Pricing is one of the major marketing mix tools. Pricing decisions can make or break a company

Price:-

Price is the amount of money charged for a product or service or the sum of the values that customer exchange for benefits of having or using the product or service.

Pricing:-

Pricing of products depends upon various factors such as cost of the product,   profit margin, demand for the products and competition etc., However the customer’s perceptions of the product’s value set the ceiling for prices. Product costs set the floor for prices.

Other internal and external   factors

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Marketing Strategy Objectives and mix

Product Cost

Customer’s Perception of Vale

↓     ↓

Price Ceiling         Floor Price

No demand after this price No profit below this price

So the process of setting price to the product taking into various factors both internal and external is called pricing.   The

companies have to take right decision at different stages of product life cycle in order to survive, develop and retain the market for its products.

The dynamic pricing strategies available to marketers are

  1. New Product pricing strategies.

  2. Product mix pricing strategies.

  3. Price adjustment strategies.

  4. Price changers.

Pricing strategies at different stages of Product Life Cycle

    Price adjustment pricing Price Changes

New Product Price Product Mix Pricing           Strategies

Strategies Strategies

-Initiating Price Changes

-Discount & Allowance -Responding to 

-Product Line   -Segmented                     Price changes

                                        -Optinal Product               - Psychological

-CaptiveProduct   - Promotionsl

-By product         - Gegraphical

-Market skimming -Product...

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