How can I choose the best price strategy and tactics?
For each individual or company with products or services for sale, the right price strategy and tactics in the marketing process for products or services play a crucial role. Given the fact that there are many price strategies, determinants for accurate price strategy and tactics used in a particular situation depends on certain criteria, including product or services, purpose for the application of the price strategy and the environment in which the products or services will be sold. The right price strategy and tactics can also be a combination of these factors, including the determination of the target demographic consumer, on which the price strategy focuses.
Importance of using the analysis of the target consumer demographic group in attempting to achieve the right price strategy and tactics is due to the fact that it allows the merchant to adapt to products or services to meeta hinged consumer base. The illustration of this can be shown using an example of a society that produces jeans for teenage boys and adult men. Such a company could decide to set the price of jeans for adolescent boys according to the perceived financial capacity of the target consumer base. In this case, the company will consider the total production costs or the total cost of production of Jean in relation to the lowest price it can determine for Jean and still make a profit. On the other hand, the company could decide that the target base for consumers for adolescent jeans will be children of good parents.
Other applications of prices and tactics can be derived from the objective of the product or services merchant. For example, the food store owner is trying to get rid of products that are about to achieve their sales according to data, they can decide to use the price strategy of product labeling. This type of price strategy can be used in this case because of the fact that the products expire.In this case, the owner of the grocery store would best serve by saving everything that can get out of the products before reaching their data.