Pricing is certainly one of the most important factors of your marketing mix strategy. Correct pricing can make your product a hit or a failure in the market. The factors that have to be kept in mind when marketing your product are the following:
- It has to be of superior quality
- It should have features that your buyers require or desire
- It should be different from what your competitors have to offer
- It should have a good cost structure
- You should also pay attention to a strong promotional campaign
- Keeping these factors in mind, it is important to determine the pricing strategy in a way that helps you to successfully sell your product in the market.
Given below are some alternative pricing strategies:
1. Generic or Economic pricing: In this strategy, the buyer is attracted by the low price. It is typical of generic or economy brands. For this strategy to be fruitful, you should have a low cost structure, minimal features and promotion. Simultaneously, ensure that you reap some solid, stable benefits.
2. Differential pricing: In this method, the idea is to set the price according to different buyer types, (e.g. the price will differ for an online store, a retail store and a departmental store); geographical area, (prices can be higher in California than in Illinois); by the quantity purchased (a person buying large quantities will get a rate different from one buying a small quantity); on the basis of national account segment (the price charged to a national account will vary from that charged to a local account). Do remember, there has to be a valid reason for applying differential pricing.
3. Premium pricing: This strategy is applicable for luxury or high end goods such as expensive jewelry, yachts, planes, estates etc. You can use this strategy if the market recognizes your product as a luxury or premium item.
4. Captive product or companion product pricing: This strategy can be adapted to product line pricing as well. In this case, products are bundled together as companions and priced accordingly. (e.g. a mixer and mixing bowl). They also consider products as captives (e.g. a razor that can only be fitted with a particular blade). These products are often packaged in a single package. (e.g. blades may be packaged with the razor) The prices of these products outside a package usually tend to be higher.
Remember to review your products carefully before choosing a particular strategy so that the pricing is appropriate.
Related posts:
- Pricing Strategies That Improve Profit
- Is Psychological Pricing an Effective Strategy?
- Price Skimming As a Pricing Strategy
- Value Based Pricing
- Offering Discounts as a Part of Your Pricing Strategy
- Market Penetration Pricing
- Pricing: All You Need to Know
- Promotional Pricing
- How To Know If Your Pricing Is Right?
- Pricing According to the Type of Product
- Diet, Nutrition And Alternative Medication For Bronchitis
- Competitive Pricing
- An Inch Loss and Cellulite Healing Alternative That Works!!
- Using Sales Strategies That Stand The Test Of Time
- 5 Strategies For Creating Win-Win Guarantees