Lets Know What Is Pricing ..
+ Pricingis the process of determining what a company will receive
in exchange for its products.
* Pricing is the manual or automatic process of applying prices to
purchase and sales orders, based on factors such as: a fixed
amount, quantity break, promotion or sales campaign, specific
vendor quote, price prevailing on entry, shipment or invoice
date, combination of multiple orders or lines, and many others.
+ Pricing is one of the four elements of the marketing mix, along
with product, place and promotion. Pricing strategy is important
for companies who wish to achieve success by finding the price
point where they can maximize sales and profits. Companies may
use a variety of pricing strategies, depending on their own
unique marketing goals and objectives.Types of Pricing
Premium Pricing
Premium pricing strategy establishes a price higher than the competitors. It's a
strategy that can be effectively used when there is something unique about the
product or when the product is first to market and the business has a distinct
competitive advantage. Premium pricing can be a good strategy for companies.
entering the market with a new market and hoping to maximize revenue during
the early stages of the product life cycle.
Penetration Pricing
A penetration pricing strategy is designed to capture market share by entering the
market with a low price relative to the competition to attract buyers. The idea is
that the business will be able to raise awareness and get people to try the product.
Even though penetration pricing may initially create a loss for the company, the
hope is that it will help to generate word-of-mouth and create awareness amid a
crowded market category.