What are the objectives of pricing?
The objectives
prices are goals that the company hopes to achieve the cost of its products or services. To make the price effective, it must be linked to the overall marketing mix. The marketing mix is known as 4 PS: product, price, place/distribution and promotion. All decisions made from the price points or costs of the goods or services to the buyer must adapt to a marketing strategy or a plan concerning the value of the product - as well as with distribution and promotional costs. The company must make a profit or profit return on investment (ROI) to remain in business, but its price goals must also be competitive to attract customers. For example, a new bread company can set up a marketing campaign around the concept of supply of quality grain products at low prices to help people during the economic recession. From the marketing of the NGLE and prices, they would differ from competitors, a position that can attract the focus of the target market through the J resultsEdline sales (USP). USPS are a strong, convincing marketing news that attracts a large number of new customers by providing them with a hard -to -use reason for buying this particular brand over the offer of competitors.
Other common prices' objectives include comparative techniques. For example, the company's prices strategy and marketing communication report to potential customers may be "we will correspond to the prices of all competitors". Many businesses that use this type of price point strategy add a brand report, such as "Smith flooring you get real value". Price comparison objectives must be based on a strong knowledge of competitors' prices, as well as on the cost and direction of society to ensure that a good return on ROI Wilstale is produced.
"Survival prices" is the goal used when the company fails well. In this situation, ROI is not in the process of determining prices; MainRather, the aim is to have a business. Survival prices can never be used as a strategy of permanent marketing mix, but only as a temporary means of staying in business.
"Skimming" is one of the goals of prices that can be used when the company focuses on customers who are not highly motivated by the cost of product or service. Luxury items are often prices in this way; If the product is a "crop cream", it is considered to be almost any price as evident in its demand. This type of price lens is centrifuged by a cream or the highest value from the market by providing premium products in demand to an exclusive target audience.