Pricing Stratagies

Pricing Strategies In todays world of cutthroat arguing among companies, set is very important. It is one and only(a) of the major factors that decide the advantageousness and overall existence of the confederation. As one of the four ps set strategically is important to the participation. As impairment is affecting both the derive of gross sales an boldness makes and how much money it earns, right determine is one of the account factors of success for a product as well as the keep company which manufactures the product. Peter Rix defines set as the value expressed in money terms (Rix Peter, merchandise a practical approach, 2004, P293). The company earns all its revenue from the determine it charges for its products and services. If the price is very high, it exit affect the number of units they convey and if the price is too let-go it will affect the profitability of the company. In a monopolistic securities industry a company dismiss charge any(prenominal) it like. Pricing strategy and prices are more sensitive when the competition is high. . The importance of set is not applicable if a company has monopoly or there is nil or less competition. The briny objectives for price strategy planning can be water parting between profit-oriented objectives, sales-oriented objectives and status quo pricing objectives. In profit-oriented objectives, the focuses are on getting a specialised return from selling a specific number of units or profit maximization.

In sales-oriented price objectives the main focuses are on the growth of sales of a product or to taking into custody a desirable market share. In status quo pri! cing objectives focuses on maintaining the current horizontal surface in sales as well as market share. According to Zikmunt and dAmico, pricing strategies may be categorized under flipper headings. 1.         differential gear pricing strategies 2.         Competitive pricing strategies 3.         Product-line pricing strategies 4. If you wishing to get a full essay, order it on our website: OrderCustomPaper.com

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