Methods of pricing in marketing

Every time we come to the store and see the change in prices, it becomes interesting, on what basis those same prices have changed, and in general, who is responsible for their formation.Particularly striking when one and the same simple product from different manufacturers vary in price in a few times, or when in the neighboring stores are the same goods in different ways.Do not rush to blame the government - the pricing is somewhat more complicated than it seems at first glance.

If you think that in a free market pricing, the price may be in the mood to write, then you are deeply mistaken.It is something, of course, possible, but such firms in the market will not last long.Looking at the basic methods of pricing in marketing, and you will understand how it is difficult and complicated process.

First of all, the company when setting prices should focus on the competition and the average market price.If this is not done, the company either can not sell their goods (inflated price), or suffer a loss (down the price).However, to navigate - it does not mean to copy.In fact, the company must assess the strengths of its product, the strengths of the competing products, and then weigh their importance in the eyes of the consumer, and, finally, to determine the optimal economic value of products.

If these methods of pricing in marketing you seem complicated, imagine that the company appreciates what product to the consumer seems to be the best - or its competitor.If it is - it can sell it more expensive, if not - on the contrary.However, it may not mean that it should.On the basis of the calculated economic value, the company generates a price that may differ from it.There is an element of the game: someone understating the price wants to win market share, and someone overstating it tends to translate into the category of luxury goods.

strategy is quite logical, but not really linked with a profit, and yet it is a profit for the company determining indicator.Earlier of ain pricing methods directly dependent on profits, asThe price is calculated as the cost-plus expected profit now.But today, in the face of fierce competition, the company can not tie the price to profit, as the risk of major to lose, so she had to come because of the prices, reducing costs to increase profits.

There are, however, other methods of determining the price different from the calculation of expected profit and the average market price analysis.They are used less often, and usually under specific conditions.For example, methods of pricing in the construction where the buyer often is determined by the tender include the so-called method of "sealed envelope".In this case, the company does not know what price a rival offer and had to guess the proposals competitors to win the tender and secure a reasonable profit.

Sometimes there are also such rare methods of pricing in marketing, as setting prices under the influence of the state, the establishment of deliberately low prices in order to ruin a competitor, establishing a uniform price for all enterprises, in absolute competition, etc.However, the greatest value in the formation of prices has, nevertheless, a subjective attitude of consumers to a particular product.

This approach to the notion of "price" makes the price in many cases is extremely unfair, "hyped" or advertising based on the incompetence of the buyer.However, while there will be a modern economic system, will be used the above-mentioned methods of pricing in the marketing, and therefore rely on some kind of justice in this case we do not have.