PRICING STRATEGIES

Pricing Strategies and Marketing Channels

Pricing Strategies and Marketing Channels

Four Steps for Setting an Initial Price for a Product or Service

Marketing Strategy

Building a marketing mix specifically defined for the service that allows your company to integrate a successful concept to market size under its control as (a) the nature of the service offered (b) where the supplies and added value in that aspect can provide your company (c) the base price and (d) promotions that can be maintained.

Estimate the Demand Curve

Pricing in the market develops, depending on supply and demand - the main economic levers of a market economy. By its sheer nature, the market economy is unstable and is in constant motion. From the microeconomic point of view of the definitions of the market, the most appropriate is the following: the market - a mechanism of interaction between buyers and sellers, in other words, the ratio of supply and demand.

Calculate Costs

For evaluation of price strategies and alternatives it is essential that cost be split in to fixed cost and variable cost. Here variable cost - cost which in the aggregate, tend to vary in direct proportion to changes in the volume of output or turnover. whereas fixed cost - cost which accrue in relation to the passage of time and which, within certain output or turnover or turnover limit, tend to be unaffected by fluctuations in volume of output of turnover (e.g. Rent, salary, executive salary). The split between variable and fixed cost should not be treated as rigid when evaluating alternative price and volume strategies, it may be that a low-price strategy involve high volume requires additional tooling where amortization is conventionally accounted as fixed.

Environmental Factors

From a competitive standpoint, prices are set on the basis of what the firm's competitors are charging. Many firms choose ...