Pricing Strategy : The Best Price Strategy Essay
When it comes to varies pricing strategies, a company must understand how competitive the marketplace can be and the demands of the customer. As the customer, you want to make sure you are getting the best deals out of your money while buying a quality product. As a seller, you want to make sure the company financial goals are set to achieve great revenue. A pricing strategy must be used to ensure the customer’s perceived value and the company’s revenue target are obtained. As a Sales Manager you want to understand the best time to raise prices on a product, without losing a customer. In order to understand the best strategies to use, you must examine the different pricing strategies based on the market demands and how one can persuade customers to pay more for the product.
The Best Price Strategy
Every company will have to raise prices on their products at some point in time. The Sales Manager must be able to select the best pricing strategy that will lead the company to financial success When determining pricing strategies, companies are limited by the factors of costs, customers, and competitors (Finch, 2012). The three types of pricing strategies a Marketing Manager can select to help gain profits are: competition-based. cost-based, and customer-based. By definition:
• Competition-based pricing: The process of making pricing decisions in response to the prices charged by competitors. Several types of company objectives are consistent with this approach…