Pricing Essays

  • 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

  • Examples Of Pricing Strategies

    818 Words  | 4 Pages

    Pricing Strategies Discount and allowances Pricing strategy We decided to adjust our basic price to rewards customer for certain responses, such as quantity discount and trade allowance. It can encourage customer to purchase our new product. In quantity discount, there are 20% off discount when buying 3 or above diaper bags. Quantity discount is meaning price is lower when buying large volume. The advantage of quantity discount is reduced per-unit price then enlarging the customer value. We

  • Importance Of Pricing In Marketing

    1803 Words  | 8 Pages

    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

  • Components Of Pricing Strategies

    975 Words  | 4 Pages

    Pricing Strategies What are the various pricing strategies at the disposal of an organization? Pricing is defined as the process of what a company will receive in exchange of its services or products. It can also be defined as the method adopted by a firm to set its selling price. Factors that influencing pricing include manufacturing cost, competition, quality of product, brand, market place and market condition. Pricing strategy: It’s the pursuit of identifying the optimal price of a product.

  • Pricing Strategies In Marketing

    945 Words  | 4 Pages

    preferences. There are various pricing techniques which sellers use to maximize consumer utility and to gain as much profit as possible. Talking about The psychological pricing techniques used by sellers, These strategies make the price more attractive and the strategy is not to lower the prices but is related to the emotions of the consumers. Various psychological pricing strategies are odd even pricing, prestige pricing, multiple pricing, bundle pricing and promotional pricing. A lot of retail stores

  • Advantages Of Pricing In Marketing

    1934 Words  | 8 Pages

    Introduction Pricing is one of the elements that constitute marketing mix, others being promotion, product, and place. However, the element price seems to be on one side of the marketing mix while the other three on the other side. Product activities involve coming up with items (goods and services) and packaging them to satisfy customers’ needs. Promotion involves communicating or providing useful information about the products a business offers, through activities like advertisements to assist

  • The Pros And Cons Of Pricing

    966 Words  | 4 Pages

    Pricing is the basic tactic adopted by the companies to attain their objectives. However, it is also the most complex of the tactics to be pursued by marketers. Too high a price could dissuade buyers away from the product and get attracted to competitive offers while a price that may be perceived as too low may cause buyers to doubt its quality and value. Contrary to popular perception, price is not calculated on the basis of cost plus a reasonable profit. It is based on the brand image created

  • Promotional Pricing Mix

    710 Words  | 3 Pages

    PROMOTIONAL PRICING : Promotional pricing often involves reducing prices to unsustainably low levels. In some cases, products and services may be sold at or below cost. A buy-one-get-one-free scheme may even be used. When this is done, interest in goods can be greatly increased, meaning sales are also likely to increase dramatically. The product marketing mix consists of the 4 P’s (Product, Pricing, Promotions and Placement) and the service marketing mix consists of the remaining 3ps(people,process

  • Pricing Strategy Of Nesol

    1134 Words  | 5 Pages

    Johnson company) for the Product Nesol Pricing Strategy: For this product Nesol a key factor to maintain competitive advantage and profitability is our choice of pricing strategy. Some critical factors important to analyze in order to choose the right price points for Nesol are: • Cost of production: the cost of production remains an integral part of a pricing strategy if the company intends to make profits on the products being introduced into the market. Pricing should therefore cover costs of production

  • Nike Pricing Strategy

    825 Words  | 4 Pages

    The Festhalten Hand and Wrist Bands will be priced using cost based pricing. The company’s major current distribution channel is straight to consumer via their website. The company also distributes product to local gyms and will continue to for this product. Unlike its competitors, Festhalten will be using a cost based pricing instead of a customer value based pricing. According to Phalguni Soni, Nike has a significant amount of “brand power” (2014). Nike has a “strong brand image, tradition of

  • Good Value Pricing In Kfc

    1014 Words  | 5 Pages

    Pricing is the value for which a consumer pays in order to acquire goods and services. Pricing is one of the main elements in the marketing mix, also the only element which generates revenue while all other elements represent expenses. Pricing is the main thing a company should take into consideration. Because of pricing, a company can develop, earn good profit & expand business. A company should consider certain sets of values before setting a price in order to make customers perceive the value

  • The Pros And Cons Of Predatory Pricing

    840 Words  | 4 Pages

    Predatory pricing is an anticompetitive strategy that indents to drive competitors out of the market and gain monopolistic profits. The logic of predatory pricing is very simple. The predatory firm first lowers its price, to an extent which the revenue of the product does not cover the costs. The competitors must then lower their prices below average cost, thereby losing money on each unit sold. If they do not cut their prices, they will lose competitiveness; if they do cut their prices, they will

  • Value Based Pricing Strategy

    971 Words  | 4 Pages

    5. Value-based Pricing: Also known as the Value-optimized pricing, it is a pricing strategy which sets prices primarily, but not exclusively, according to the perceived or estimated value of a product or service to the customer rather than according to the cost of the product or historical prices (Wikipedia). Where it is successfully used, it will improve profitability through generating higher prices without impacting greatly on sales volumes. The approach is most successful when products are sold

  • Dunkin Donuts Pricing Strategy Essay

    825 Words  | 4 Pages

    different uses of pricing strategies and the purpose is to explore how and why strategies are used based on the industry or company. The target audience could be any upcoming businesses - to understand how others make profit, based on specific strategies. The following pricing strategies will be discussed in this report: 1. Premium – Emirates Airlines 2. Competitive – Samsung 3. Cost-Plus - Nike 4. Product line – Dunkin Donuts 2.0 Main body 2.1 Pricing strategy name Premium pricing 2.1.1 Company name

  • Definition Process: 8 Steps In The Pricing Process

    1010 Words  | 5 Pages

    8 steps for Pricing Process: Some of the major steps involved in price determination process are as follows: (i) Market Segmentation (ii) Estimate Demand (iii) The Market Share (iv) The Marketing Mix (v) Estimate of Costs (vi) Pricing Policies (vii) Pricing Strategies (viii) The Price Structure. (i) Market Segmentation: In market segments, marketers will have firm decisions on: -The type of products to be produced or sold. -The kind of service to be rendered. -The costs of operations to be estimated

  • Nike's Price And Pricing Strategies: Nike

    1004 Words  | 5 Pages

     Price and Pricing Strategies: NIKE uses Price Leadership strategy and value based pricing. This is when a company sets its price based on the value the consumer places on the product. NIKE has spent a lot of money to promote their brand as top of the range. Customers buy the product for the NIKE symbol and are willing to pay high prices regardless of the product’s actual value. A product‘s price has strong connections with its point in the life cycle. In the introduction phase, a skimming or a

  • Different Types: Pros And Disadvantages Of Premium Pricing

    706 Words  | 3 Pages

    Premium pricing is the practice of setting a price higher than the market price, in the expectation that customers will purchase it due to the perception that it must have unusually high quality or reputation. In some cases, the product quality is not better, but the seller has invested heavily in the marketing needed to give the impression of high quality. Premium pricing works best in the following circumstances: There is a perception among consumers that the product is a "luxury" product,

  • Advantages Of Colgate Pricing

    1707 Words  | 7 Pages

    Pricing In a society that cares about appearances, consumers continually look for a new innovative oral care product to provide an extra sparkle to their smiles. Oral care companies are marketing their products to different consumer segments in order to capture their share in the growing segment market. Today’s consumers demand numerous benefits from their toothpastes and manufactures are responding accordingly. Similarly, Colgate is committed to act with compassion, integrity and honesty in all

  • Marketing Strategy: Nike's Cost-Based Pricing Strategy

    745 Words  | 3 Pages

    Price Nike applies a premium pricing technique. The type of good that will be advertised is going to influence the price of a product. Nike utilizes vertical integration in pricing wherein they claim members at differing channel levels or participate in more than one channel level operations. This is additionally an endeavor to control expenses and impact evaluating practices. Nike 's pricing is intended to be aggressive to the other fashion shoes retailers. The pricing is focused around the premise

  • The Asset Pricing Theory: The Asset Pricing Theory

    1183 Words  | 5 Pages

    1.0 ARBITRAGE PRICING THEORY (APT) The Asset Pricing Theory is an approach to determining asset values based on law of one price and no arbitrage. Founded upon the work of Ross (1976, 1977), it aims to analyze the equilibrium relationship between assets’ risk and expected return just as the CAPM does. The two key CAPM assumptions of perfectly competitive and efficient markets and homogeneous expectations are maintained. Moreover, in line with the CAPM, the APT assumes that portfolios are sufficiently