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Introduction to Pricing Strategies
- Narrated by: Tracy Tupman
- Length: 37 mins
- Unabridged Audiobook
- Categories: Business & Careers, Management & Leadership
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Publisher's Summary
The world of marketing has shown immense growth since its birth and is continually growing. The business companies in the market run into neck-to-neck competition with each other; thus, it has become important for each and every business company to be the best. The kind of strategies that a company uses within its different marketing sectors greatly determines the success of a company.
Pricing strategies can be defined as a way or a method of finding a competitive price of a product or a service. Pricing strategies are designated as one of the most important and highly demanded components in the field of the marketing mix. It helps the consumer in setting up an image regarding the standards and the quality of the final products rendered by the company thereby facilitating in the creation of an exceptional reputation of the firm in the market.
Product pricing has a big effect on the objectives of the company. It is important for the companies to use pricing strategically for adjusting the performance so that they can meet their revenue or profit objectives. However, the use of a pricing strategy can also have an unintended or adverse effect on the objectives of the company. The product pricing affects each of the price objectives - profit, customer, and competitive.
Making a decision regarding the pricing of the product by keeping in mind the value that it renders and sticking to the characteristics of the pricing strategy in use at the same time can be tricky. But sticking with the laws of psychology in pricing makes it a little easier. Thomas Nagle and Reed Holden came up with nine principles or laws that affect the psychology of the customers with regard to their decision of purchase. By making use of these laws, one can make the required adjustments in their pricing strategy after knowing the psychology of the customers.
It is important to understand the fact that the ultimate goal of the company is to increase its profit margins over time whilst being in competition as well as to be able to sustain the competitive market. However, it is essential that the marketer is able to maximize their profits along with retaining their consumer, and one should select an appropriate pricing strategy for sales for the same purpose.
