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Pricing is a branch of the marketing discipline. Choosing a suitable pricing is an important part of marketing strategy that is the most fundamental part of the process. Pricing is an important aspect of marketing as if the price of a product is set low a company would then not be able to earn any profit. Alternatively, if a company sets the cost of their product on a higher lane without strength of a brand value then there is a high chance of them incurring a loss as no customers would be willing to spend money on their products.
With the assistance of our professional pricing strategy assignment help every student would be more than capable of distinguishing the right or wrong process of selecting the cost o a product making them in valuable for a company.
Things that a student must keep in mind while determining the pricing market –
1) Penetration pricing
This discipline of pricing strategy is adopted by companies to grab the product market at the very initial stage. The pricing strategy involved in the subject usually promotes the theory of keeping the product price low so that a company can acquire a bigger client base. Business authorities at a later stage increase the price of their products after they have a huge customer base.
2) Competition pricing
It is all about placing the price of the product based on their competition in the market. This strategy of pricing is mostly used by the companies selling related products of the same genre in the market. In competition pricing strategy, a company sets the cost of their products after analysing the price of the competitor organizations.
3) Cost Based Pricing
It is the pricing system that acts as on the total sum of all the expenditures related to a product combined while setting the sale price of it. The cost based pricing strategy integrates all the cost of product that has incurred in the operation, production and transportation all together to set the suitable pricing for the manufactured goods. After that organizations set their profit margin of the products.
Making the production cost low would diminish the quality of the product while reducing the profit margin may set the company at a loss.
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