A major consideration in business from both the manufacture’s and customer viewpoints is and has always been the price. The issue discussed here is” should the retailer practice “everyday fair pricing” or engage in “frequent price promotions”? Is it better for a brand to raise its regular price and offer price promotions or is the brand better off offering lower regular price with limited price promotions? In my paper I will support and argue for setting the right price, which in other words make shoppers feel they are getting a fair shake from the businesses they regularly patronize. Importance of setting the Right Fair Price Pricing strategies are important criteria which affects the overall success of the company.
The pricing strategy needs to be an integral part of any organization selling in the market (Wharton, 2003).By having a reasonable price; the customer is able to retain its existing customers as well as attracting new ones. It should also be noted that organisations need to do proper market analysis so as to keep prices on par with competitors. Having good prices help create consumer loyalty among existing consumers and also help to attract new
Folded and Hung is known to other people because of their different designs and styles. Identifying the best advantages over other boutiques to be recognized by the public will be a great source of revenue for the store. Folded and Hung faces a new challenge because of the entry of H&M, Uniquelo and Forever21. The Store Manager Mr. Mark Anthony Bolando approved the researchers request to do a study about Folded and Hung to help him know what to improve with their products in order to retain their existing customers and to attract new customers. The research entitled “Perception of Customers on the Differentiation Strategies of Folded and Hung in SM City Bacoor: Basis for Competitive Advantage” aims to help develop better competitive advantage for Folded and Hung over other
This is because in today’s competitive global markets, consumers will look the quality products at the lowest prices. The organization also must keep pace with the dynamic requirements of the market and be receptive to reform. Due to the intense global competition among the producers or company, and the supply chain must be able to respond quickly to the changes. Besides that, companies are facing fierce competition today, which is constraining them to seriously consider new applications that they can use to enhance the quality of product or services and to reduce cost of production. Furthermore, increasing pressure from foreign compet... ... middle of paper ... ...ccess.
The best way you can promote your product is by; advertising - to inform and persuade the public about the offer or sale. Packaging - to present the product in a formal and in an appropriate way and special promotions such; buy one get one free. The price needs to be relevant to the quality of the product and service in the market. A business pricing decisions often aim at attracting particular marketing segment. For example, if a business were to sell at the top of the market, it will charge a higher price, hoping that the consumers will expect a high-quality product and at the bottom a low price and so on.
So these companies in general find it most important to promote a product and sell it to make income. 3. Market Orientation: This type of business is one that believes marketing (or how the product is being sold/advertised) is the most beneficial piece. In other words, it is all about what the customer wants and how they evaluate products. Firms like these recognize that in order to understand and beat the competition, you need to know everything about the customer.
This pricing scheme will use the value that a product shall deliver to a segment of clients as the primary component for setting prices. Conversely, customer value-based methods will take the customer perspective into account, but relevant data will be more difficult to obtain and interpret. This method shall be positively correlated with new product success, therefore it will be the best strategy to adopt in making decisions around new product pricing. Here the company shall employ the good value pricing strategy for their products (higher education and consultation services). This method will offer the right combination of quality and good services at a fair price.
It has direct effect on the revenue and profit a business derives .Therefore the price should be so that the business can make maximum profit from the goods sold. There are various pricing strategies a business can practice in order to guarantee a successful product. Examples are value pricing, market penetration pricing, bundle pricing, predatory pricing, etc. (Surridge and Gillespie pg 208-209) The second marketing mix is promotion. This is simply the communication to a potential customer about a product or service by one or more means (Surridge and Gillespie pg.
On the other hand, with cost leadership the goal is for the firm to create a value for the customer that is the same or similar but at a lower price (Rothaermel, 2013). There are several drawbacks and risks to a broad generic business strategy. With differentiation there will always be in a change of customer’s taste or what the customer wants. In addition, there will imitation by the competitors of the firm. Other companies often are able to gain a higher level of differentiation because of being more diverse and seeking a focus strategy.
As its name suggests, ROI is the amount of return (either as a fixed percentage of sales or profit)generated by a particular degree of investment. A high return due to high pricing of the product with the low cost of production and promotion is what all the investors strive for. But again, they also need to care for their customer base. 3. Increasing the sales In these sales-oriented pricing objectives, knowledge gained from experience curve is put to some good use in predicting a strategy that's capable of decreasing long-term costs while ensuring a long-run profit, by increasing the number of units sold.