ipl-logo

Importance Of Pricing In Marketing

1803 Words8 Pages

Price as the value placed on a product exchanged between buyer and seller. Pricing is also a key element in the marketing mix because it relates to maximize profits and sales and increase the market share. Marketers know that, among the variables that affect consumers’ purchase decision is the price, which has a significant influence on communication factors concerning the advantages of purchasing a product or services. Marketers use some pricing strategies to attract consumers’ attention to their product or services. There are New Product Pricing, Psychological Pricing and Price Discounting. One of the purposes of the pricing practice is to elicit a direct impact on the purchase behavior of the consumer. Marketer put full effort to improve the strategies in order to reach the consumers who plays important roles as user, payer and purchaser effectively. They promote their strategies to consumers by advertisement like TV, radio, newspaper, magazine and Internet in order to promote and increase perception to their products and brands. Promotion pricing strategy is a good idea of the best way to reach consumer and increase public relations. Marketer should be analysis and do research to gain information what actually consumers need, what they think to satisfying and fulfill requirement consumers. So that also able fight with other competitors in the market.

Main Body

By using Psychological Pricing Strategy, it encourages purchases based on emotional rather than rational

Show More
Related

  • In Absence Of The Federal Trade Commission

    1616 Words  | 7 Pages

    Therefore, a company must anticipate how much other companies will charge for a similar product to have competitive pricing. This turns into an application of game theory. This happens when two firms (or

    Read More

  • Business Level 3 Unit 9 P1

    762 Words  | 4 Pages

    If we are selling our product at £2.50 and any competitor was to sell their product at £1.50 people would be more attracted to the lower price. This means we need to set a suitable price that everyone can afford to generate more sales. Which promotional methods used depends on certain factors, for example which stage in the product life cycle is it in? Advertising is important at the launch

    Read More

  • Situational Analysis: Product Life Cycle Of Microsoft Office

    811 Words  | 4 Pages

    • Price may need to be adjusted downwards to hold off competitors and maintain market share. : The major pricing decision is whether to set a price above, below or about even with the competitors’ price. This influences Microsoft office to list their product in premium priced list, however, all the other products, which have alternatives in the market, are priced competitively. • Promotion continues to suggest the product is tried and true: Microsoft has a certain amount of promotion, which is mainly used for its premium products which have a large share of the market. Or the promotions are used for products which are in high competition segments like phones with collaboration in other companies.

    Read More

  • Pricing Strategy And The Pricing Strategy: Dyson

    1009 Words  | 5 Pages

    4.4 Pricing Strategy For a number of reasons, price is one of the most important aspects of an effective marketing strategy (Gerstein & Friedman, 2015). First, price is the only marketing variable that generates revenue. Second, buyers see price as an attribute of value (Tanner & Raymond, n.d.). Consequently, an organization must carefully assess its internal and external environment to choose the most effective pricing objective, which—in turn—will drive a product’s initial pricing strategy.

    Read More

  • Swot Analysis Of Uniqlo

    1486 Words  | 6 Pages

    This creates the perception by the consumer to be a value-added pricing of the products. The two price adjustment tactics of UNIQLO are detailed as follows: Psychological

    Read More

  • Case Study Of Apple Inc.'s Diversification Strategy

    1442 Words  | 6 Pages

    Normally, consumers have unique needs that are not similar all the times. Therefore, the company must develop products that can address the unique concerns of the consumers. Evidently, Apple Inc. has been successful in the creating variety of products. However, pricing of the Apple Inc. products tend to limit the ability of buyers to purchase the products. While the company might justify the price of the products, setting the prices too high limits the ability of the willing buyer to purchase the

    Read More

  • Four Major Influence On The Marketing Philosophies

    777 Words  | 4 Pages

    Marketing is defined as a philosophy implemented by a set of processes that focuses on the customers’ satisfaction. It has four major activities that revolve around the consumer value. The activities are creating the products and services, communication, delivery, and exchange. Every company strives to implement the marketing concept to achieve its goals. There are mainly four major philosophies that different companies use to steer their marketing strategies.

    Read More

  • Moccona Coffee Case Study

    1044 Words  | 5 Pages

    Introduction Every business organization is using a marketing concept which is used as a tool to identify customer’s needs. And further try to meet them by making right decisions in line with customer’s needs. In line with meeting customer’s needs the ultimate goal of every business is to gain profit. That’s why they make use of different marketing strategies to meet not only the need of the customer but as well as the goal of the company. We know for a fact that marketing strategies comprises everything from developing a product, to introducing it to the market, to selling and improving it as the need of the target market changes.

    Read More

  • Value Proposition Of Fitbit

    1808 Words  | 8 Pages

    The pricing strategy or pricing policy is one of the most important managers make for a product as it affects the profitable outcome and competitiveness that a product may make. (Toni, 2017). A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can also be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market by dropping the price or offering more benefits with the device such as packages.

    Read More

  • Marketing: Marketing Mix In The Ice Cream Industry

    1497 Words  | 6 Pages

    6.1.2 Price Price is the value or amount that customer pays to buy a product. For instance, for our Star Lab ice cream shop, we need to consider the cost of production of our ice cream, price of our main competitor and our potential customers demographics in order to succeed this competitive market. (C. Breidert, 2007, p.9) 6.1.2.1 Pricing Strategy Pricing strategy that can be used by our company such as penetration pricing, cost-plus pricing, value based pricing and more. But we think that market penetration pricing is the best pricing strategy to be used by our business.

    Read More

  • Amazon Marketing Strategy

    1532 Words  | 7 Pages

    This strategy is advantageous because it enables the company to adjust its prices based on national market conditions, perceived value of products, and consumer preferences and expectations. In relation, Amazon.com Inc. uses the value-based pricing strategy, which involves price levels based on product value, considering consumers’ perception of value. Thus, the company’s marketing mix reflects flexibility in adjusting to current market

    Read More

  • Reflection On Strategic Marketing

    917 Words  | 4 Pages

    Strategic marketing is a broad and practical subject which included the concept of marketing subjects of previous semesters such as business marketing. The study of this subject has contributed to marketing knowledge in many ways, as well as it has strengthened my skills in application of marketing concepts. My knowledge was increased that I was able to develop a complete strategic marketing plan of not only on the part of marketing analysis or strategy of a product or service, but also the whole corporate plan. My skills and capabilities that were developed and integrated during lectures and tutorials include the analytical skills, coordination skills, presentation skills, organization skills, etc.

    Read More

  • Competitive Advantages Of Mr Price

    835 Words  | 4 Pages

    Mr Price is known to be the best retail company that has a wide range of products sold in South Africa. They were established in 1885, they have been trading on the JSE since 1952. There are Mr Price stores located all around Africa, such as Botswana, Kenya, Tanzania, Malawi, Namibia and of course in South Africa. The founders Laurie Chiappini and Stewart Cohen opened the very first Mr Price in 1985 in Durban.

    Read More

  • Literature Review Of Advertising

    974 Words  | 4 Pages

    Literature review Advertising has become a form of communication and a great source for promoting services and products for any business in the whole market because of its broader impact. The main idea of an advertisement is to get the attention of the consumers, build up the product’s strong image in their mind and provide information to help the consumer to make a purchase decision. So, the central focus in today’s diverse global marketplace is the consumer. Companies exert a lot of effort to find out the best ingredients that should be in an effective advertising and identifying its influence on the consumer’s mind, so effective advertising should be considered as one of the most important tools that strongly affect and can change the consumer’s buying behavior. The research attempts to investigate the impact of effective advertising on the consumer’s buying behavior.

    Read More

  • Importance Of Market Structure

    1743 Words  | 7 Pages

    ECONOMICS ASSIGNMENT CLASSIFICATION OF MARKETS AND ITS PRACTICAL IMPORTANCE SUBMITTED BY, REVIN FRANCIS NO-b1488 MBA-A  MARKET STRUCTURE Market structure is defined by economists as the characteristics of the market. It can be organizational characteristics or competitive characteristics or any other features that can best describe a goods and services market. The major characteristics that economist have focused on in describing the market structures are the nature of competition and the mode of pricing in that market. Market structures can also be described as the number of firms in the market that produce identical goods and services. The market structure has great influence on the behaviour of individuals firms in the market.

    Read More

More about Importance Of Pricing In Marketing

Open Document