Price Strategy And Estimate Of Price Elasticity

And the customer are sensitive to the price since those products are using only few times and need to be change all the time.

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

The setting of ‘fair’ prices to consumers: the company should bear in mind that customers nowadays will shop around to compare the intended products and services. However for the business survival and growth purposes, the company should also maintain its profit margins to ensure its business growth and expansion. The company needs to consider its cost factors and business operation areas to reduce or minimise the costing areas.

When trying to determine the correct price, a number of factors must be considered: the market and its segments, the size of each segment, the ability to reach each segment, what distribution channels to target, whether to vary price by segment, the usefulness of promotional offerings, and whether the goal is to skim or penetrate each market.

A product that brings positive benefits to the customers should not set its price at a very low rate as it will devalue the product and lost credibility for the benefits that the product has promised. In addition, the price should not be over $ 20 as research has been conducted to show that very few customers are willing to pay above $20 for the product.

With the poor growth rate in the developed nations, price has become one of the major factors in everyday increasing demands for low cost products which are good enough in getting the task done

Costs play an important role in setting international prices. Travelers abroad are often surprised to find that goods that are relatively inexpensive at home may carry outrageously higher price tags in other countries. Besides, such price escalation may result from differences in selling strategies or market conditions. In most instances, however, it is simply a result of the higher costs of selling in foreign markets such as the additional costs of modifying and packaging the product, higher shipping and insurance costs, import tariffs and taxes, costs associated with exchange rate fluctuations and higher channel and physical distribution costs. Futhermore, Milo also adopted Promotional Pricing strategy. Selling products is challenging when shelves are lined with similar-quality products, and customers are bombarded with advertising messages. Promotional pricing helps differentiate Milo’s product with its competitor and leverage a potential customer's attention long enough to purchase the Milo products. Promotional pricing involves lowering the price of a product, distributing coupons or offering specials, such as buy-one-get-one-free offers. For example, Milo offer promotional pricing for its product in weekly catalogue to create excitement and a sense of

Pricing product effectively can drive success or failure for a product. But what should be considered

The markets today are so complex and deal with so many variables it can be difficult to understand just exactly how they operate. In the following I will reveal the different kinds of market structures along with their different pricing strategies. Relating to these topics, I will focus on the importance of cost, competition and customer.

Marketing strategies also have to be co-ordinated or integrated with sourcing strategies as well as production, management and logistical systems. Increased efficiency of transportation and communication networks coupled with greater awareness and sensitivity to cost and efficiency differences between countries and regions have generated pressures for the growth of global sourcing and procurement. This in turn generates forces to co-ordinate operations at subsequent levels of the value chain across countries and regions. In the case of production and logistics, numerous synergies may be achieved through the integration and co-ordination of operations worldwide.

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).

On the other hand, companies may use the lower price, because they only had lower value for their consumers compare with other companies. And the Value can be in many types in different areas and different faces, such as the quality of service, the power of brand…etc. For example, the Mercedes-Benz can match the social status of the customers, the customers also have brand loyalty, and they think that drive Mercedes-Benz is a kind of way to show their wealth. Therefore, the customers may accept the higher price.

Pricing for export market is one of the most important factors determining the performance of export ventures. Scholars describe the export pricing as one of the prime devices used by the exporters to adapt offering to fulfil the requirement of foreign markets (Myers et al 2000). In the competitive export pricing environment, it is expected that export performance is impacted by competitive export pricing. According to Porter (1980), in an increasing competitive environment in the international markets, a flexible marketing strategy is more regarding that a rigid strategy. Kotabe and Helsen (2001) state that as buyers have become more sophisticated in their choice, the pricing strategy needs to be more buyer-oriented to be competitive.

When marketers talk about what they do as part of their responsibilities for marketing products, the tasks associated with setting price are often not at the top of the list. Marketers are much more likely to discuss their activities related to promotion, product development, market research and other tasks that are viewed as the more interesting and exciting parts of the job.

Pricing- The price of the Product is actually the money which a consumer pays in order to enjoy it. Price is a necessary element of the marketing mix because it determines the company’s profits as well as its life cycle. Amazon adjusted the price of the product which has huge effects on the total marketing strategy, along with this; it also has big impact in sales as well as in demand of the product (Dominici, 2009). This region is actually quite tough region for the company. Because, if the firm is new to the market and yet not create any goodwill for themselves in the market then, is it doubtful that their target market may be willing to contribute huge amount. Pricing helps to frame the views of company’s product in the customer’s perception (Dominici, 2009). Amazon always remembers that a lower amount actually means an inferior product in the customer’s opinion because they compare the product to its competitors. Moreover, the experience as well as the name of the brand also matters into the final amount offering.