Pricing Strategies Ryan W. MKT 441 February 23‚ 2006 5 Pricing Strategies In this paper‚ I will cover five different pricing strategies used‚ by retailers and manufacturers‚ to sell their products. I will demonstrate how pricing products according to one of the five pricing strategies chosen works effectively for each company. Loss Leader Look in any newspaper circular‚ it is chocked full of advertisements from untold numbers of retailers who are trying to push "loss leaders" onto consumers
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presentation is to discuss the theory of distribution strategy with the underlying real life examples of McDonald ’s fast-food restaurants in Australia. In other words‚ the aim is to discuss McDonald ’s distribution channel‚ the way this fast-food restaurant gets its products to the market. Nonetheless‚ this presentation will demonstrate that McDonald ’s distribution strategy is effective in many cultures. In the theory of marketing mix‚ place (distribution) determines where the product will be sold
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http://www.bized.ac.uk Pricing Strategies Copyright 2006 – Biz/ed http://www.bized.ac.uk Pricing Strategies Copyright 2006 – Biz/ed http://www.bized.ac.uk Penetration Pricing Copyright 2006 – Biz/ed http://www.bized.ac.uk Penetration Pricing • Price set to ‘penetrate the market’ • ‘Low’ price to secure high volumes • Typical in mass market products – chocolate bars‚ food stuffs‚ household goods‚ etc. • Suitable for products with long anticipated life cycles
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Pricing Strategy To set a pricing strategy‚ there are number of steps taken into consideration as follows: Step 1: Our pricing objectives are to maximize market share and increase sales volume. This strategy will be used when TrackR is being launched into the market. We charge a reasonable price in order for TrackR to be accessible in the market as quickly as possible and also to encourage the interest and excitement of a product. Because of the low price‚ we are able to raise the sales volume easily
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Market Structures and Pricing Strategies Kiona Thomas American Public University Econ600 Abstract The article analyzes the four main market structures‚ which are perfect competition‚ monopolistic competition‚ oligopoly and monopoly. It provides a detail description of the market‚ as well as explains the pricing strategy a firm would pursue in that particular market. The article also concludes with a real world example of Visa pricing strategy by examining it oligopoly market
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fresh chicken to its discount battle and promising the cost of more staples will soon drop. In this article we can see what the Coles use the marketing concepts of customer wants‚ pricing‚ and satisfaction to the market. Coles’s latest product is more price cuts planned in the next few weeks. It is shown that‚ Coles are using market –penetration pricing strategies‚ setting a low price for a new product in the next few weeks to attract a large number of buyers and a large market share (Kotler et al‚ 2010
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Assignment 3: Pricing Strategy and Channel Distribution 1. Determine and discuss a pricing strategy (Penetration and Skimming) The penetration pricing strategy approach is what we are going use to represent our SONO water filter products in today’s market. Since it serves as many customers as possible representing different valua-tions‚ this pric¬ing model will be our best option. The advantage this approach holds for us is the low volume customers‚ who presumably have a relatively lower valu¬ation
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Developing Pricing Strategies and Programs Marketing Management Price Changing in the Internet Internet reverse the fixed pricing trend‚ since: Buyers can: Get instant price comparisons from thousands of vendors. Name their price and have it met. Get products free. Both Buyers and Sellers can: Negotiate prices in online auctions and exchanges Sellers can: Monitor customer behavior and tailors offers to individuals. Give certain customers access to special prices. Consumer Psychology
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services is worth to the customer. 2. Pricing decision is usually viewed as a way to recover cost‚ but we need to take the customer into the account/ consideration. The price could be higher than customers are willing to pay for that product. 3. The major factors affecting price are: a. Marketing Strategy b. Customer perceived Value c. Competition d. Cost 4. Role of Marketing Strategy in Pricing a. Price should be consistent with the pricing strategy. b. Target market decision affects price
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Pricing strategies An enterprise should have a good pricing strategy which is suitable to the company’s current situation or condition in order to earn more profits. By adopting a good pricing strategy‚ company has a key option to stay viable. If a company wants to earn more profit‚ merely raising the price of a product is not a good option particularly in economy recession. It can lead a company to downfall as the company’s product lost out in the marketplace because of the price factor. Product
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