Low cost has always been the strength of any company. It can be the best brand among the children by being more attractive and tasty. Pricing decisions must also reflect appropriate timing.
Types of Costs — Cost-based Pricing Before going on, we should investigate the different types of costs. From the years to the Central government levied special excise taxes on luxury products and automobiles. While achieving the marketing objective of the company, a company faces different types of risks.
This can lead these organisations to emphasise price in their buying decisions. I have prepared slides which I am going to discuss in this presentation.
Lower long-distance telephone rates may lead people to make phone calls to friends they normally would write to. Additionally, recent research findings are available that provide other useful insights into the judgmental assessment of price-elasticity.
If the value is not cost effective, the product may not be suitable for the company to produce. Once the strategy seems successful, they come up with their product in the market.
While doing the internal analysis, the management can identify how its strength can assist in achieving its goals and how its weaknesses may hampers the plans.
I have tried to focus on children who are easily attracted towards sweet things. It guides a particular direction for the company in which it should be guided. In focus strategy, the management focus particularly on niche market.
General Electric is discounting its magnetic resonance imaging machines and CT scanners in order to allow hospitals to reduce the diagnostic fees they charge patients. Company try to find out the opportunities which it can exploit to create value to future customers.
Ansoff matrix will help the management level in determining the marketing strategy that the company should adopt. Expected unit sales are 50, Then on the next two stages, the competitors that are in the market and new competitors that are coming in the future are analysed.The various pricing strategies for products include, competition based pricing, cost-plus pricing, creaming or skimming, limit pricing, loss leader, market oriented pricing, penetration pricing, price discrimination, premium pricing, predatory pricing, contribution margin based pricing, psychological pricing, dynamic pricing, price leadership, target pricing, absorption pricing, high-low pricing, premium decoy pricing.
Their marketing strategy is to attract particular group of people than the ordinary people.
CONCLUSION. To sum of the principles of strategic marketing, strategically developed marketing strategies are the building block of overall corporate strategy.
Cost based pricing is one of the pricing methods of determining the selling price of a product by the company, wherein the price of a product is determined by adding a profit element (percentage) in addition to the cost of making the product.
Significantly, the combined use of cost-based pricing and perceived value pricing lead to better performance than the sole use of either pricing strategy. This dissertation also examines the factors that drive the adoption of using a combination of both strategies.
The main topic for this Extended Essay is to analyze the effectiveness of company’s market strategy. A marketing strategy can be defined as a process that helps a business to optimize the opportunities in order to complete business objectives, which mainly gain profits.
Costs-plus Pricing – the simplest Cost-based Pricing Method Cost-plus pricing is the simplest pricing method. It is also called mark-up pricing and means nothing else than adding a standard markup to the cost of the product.Download