Pricing

Pricing is one of the most important elements of the marketing mix. It is also one of the most difficult. Get it right and you may make a lot of profit. Get it wrong and you may have a huge failure on your hands. There are several different pricing strategies and there is no one that is always right.

Penetration Pricing A low price is set by the company to build up sales and market share. This may be done to establish position in a market with preexisting similar products on offer. Once a position is created, the prices may be raised. A satellite channel provider may offer an introductory price and then increase as business grows.

Skimming Pricing Here, the initial price is set high and may slowly be brought down. This will allow the company to introduce the product step by step to different layers of the market. Electronic and tech gadgets often start at a very high price which is subsequently lowered with the lowest point reached right before a new model is launched.

Competition Pricing When trying to go head to head with competitors offering similar benefits, a company may decide to: a. price higher to create a higher quality perception or to target a niche market b. price the same to show more benefits for the same price c. price lower to try to gain a wider customer base

Product Line Pricing Here, different products in the same range may be set at different prices. Television sets are priced differently depending on whether they are HD or not, whether they have wifi features of not and whether they are 3D or not.

Bundle Pricing A group of products may be bundled together and sold at a reduced price. Supermarkets often use this method through their ‘buy one get one free’ offers.

Psychological Pricing Often a company will make small changes to prices to make a customer think the item is priced lower than it is. This is often seen in prices ending in 99. For example, an item market 199 will be perceived as closer in price to 100 than 200.

Premium Pricing A high price is set to establish an exclusive product of high quality. Designer cars and premium brand stores are a good example of this type of pricing.

Cost Based Pricing Simply, a company may determine the exact cost of producing and selling an objective, add a markup that may be desirable for profits and price accordingly. This method may be used in a changing industry where even costs of production are unpredictable.

“PRICE IS WHAT YOU PAY. VALUE IS WHAT YOU GET.”

WARREN BUFFETT

“THE PRICE OF ANYTHING IS THE AMOUNT OF LIFE YOU EXCHANGE FOR IT.” HENRY DAVID THOREAU

“FLYING MIGHT NOT BE ALL PLAIN SAILING, BUT THE FUN OF IT IS WORTH THE PRICE.”

AMELIA EARHART

Запоминаем:

marketing mix - маркетинговый микс (маркетинговая теория 4P, основанная на четырех координатах маркетингового планирования: product, price, promotion, place)

profit - выгода

to have on your hands - иметь на руках

pricing strategies - стратегии ценообразования

Penetration Pricing - ценовая стратегия проникновения на рынок

an introductory price - вступительная цена

Skimming Pricing - стратегия "снятия сливок", вслед за которой применяется стратегия "скользящей падающей цены"

Competition Pricing - стратегия конкурентных цен

benefit - выгода

Product Line Pricing - ценовые линии

Bundle Pricing - ценовая стратегия "Набор"

Psychological Pricing - стратегия неокругленных, психологических цен

Premium Pricing - стратегия престижных цен