Pricing strategy is a very important function that any business engages in. Price is a foundational element of a firm’s revenues—if managed cautiously, they can generate high profits & consequently cash. The pricing strategy takes into account fragments, ability to pay, competitor actions, market conditions, trade margins & input costs, amongst others. It is targeted at definite clients and against competitors. It accounts for many business factors including marketing objectives, revenue goals, brand positioning, target audience, and product attributes. They are also influenced by external factors such as competitor pricing, consumer demand, overall market, and economic trends. There are various ways of organizing pricing strategies.
One is to classify low pricing (cost-plus, market penetration, loss-leader and nearly predatory), medium pricing (pricing below for perception of good value, competitive, price slightly above if more benefits are provided or brand equity is there), and high pricing (prestige pricing, price skimming, price signaling). There are many aspects to consider when developing the pricing strategy, short term, and long term. Our Pricing Strategies for New Products are required to support your brand, maximize the profits, reflect the value you provide vs. your competitors, enable you to reach your revenue & market share goals, and match the market offering value. Pricing Analytics Models and Tools are defining by various terms: penetration pricing, premium pricing, skimming pricing strategy, and economy pricing. Penetration pricing is a method used to attract a high volume of buyers by marketing products/services at a lower price than the competitors. Premium pricing strategy is employed with the profit margin maximization and quality leadership pricing objectives. The premium price charged for the uniqueness & quality of your product/service allows you to generate huge profit margins on each item sold. A skimming pricing strategy tends to work best throughout the preliminary phase of products or services. It entails introducing a product/service to the market at the best price, then systematically lowering the price over time to attract a larger customer base. This method allows a firm to generate considerable profits in the introductory phase of a product/service and works best for products or services that can be promoted to clients willing to pay the top cost for the latest & greatest.
Our market research reports will make accessible you the extensive-ranging experiences to competitor’s product/services and pricing analysis which will admirably promote you in the benchmarking of your strategy with the other competitor. Competitive intelligence will expressively help you to grasp the best practice in business which will agree on you to create the proper pricing strategy. Moreover, competitive pricing is a strategy that advancing organizations and attracts more regulars by utilizing the prices upgrading the competitor product and pricing analysis data. A thriving pricing strategy can expressively expand the sales, resulting in better cooperation with the wage-earners, and grow the revenue. Although, Ken Research constantly assembling the practiced data, observe the trends and arrangements in the competitor comportment. With our market research reports, you will adequately find out their off-season discount schedule, the products/services they discount in essence, how much they advance the prices.
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Ankur Gupta, Head Marketing & Communications