Pricing is an essential aspect of any product that can decide the success and failure of any product or service. For any product to become famous in the market, the price has to be at par with all the other substitute products available in the market. Moreover, to settle the price of any product, various factors are to be kept in mind as the price of raw materials, market conditions, competitors' pricing, and other external factors.
Pricing Strategy Assignment is the assignment mostly given to students of management so that the students can know the different challenges that are needed to be observed to fix the price of any certain product. As this is a substantial part of the marketing strategy, students who opted for marketing must have sound knowledge in this field of studies.
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Factors that are important in Pricing Strategy Assignment
Many factors play a significant role in determining the pricing factors of products. To be aware of the market condition that is prevailing in the situation needs to be addressed. The company has to keep in mind that the price of the product is the factor that deserves the most attention as it attracts the customers and will also earn profit for the firm manufacturing it. Very high prices will repulse the buyers and too low a price will hinder the earning of profit.
Some strategies that help in formulating the price are as follows:
Penetrating Pricing
In this strategy, the introductory price of the product is kept very low so that it can grab the attention of the buyers. The price of the product or the service will gradually increase once it is accepted by the buyers.
Competition Pricing
This strategy is about keeping the price at a competitive rate with the competitors. The company that needs to set the price will research the price of the competitive products available in the market.
Pricing based on cost
The business organization that concentrates on determining the price of their products on the total cost takes into account this type of pricing strategy. The cost that is determined for the product encloses all the production, advertising, and transportation. It is appropriate for those who want to keep the pricing simple without hidden pricing.
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