Pricing Strategies and Factors: A Comprehensive Analysis

Factors That Influence Price

6.5 Factors That Influence the Price

For a business, the first consideration will be the objective to be enforced, and secondly, the marketing mix. Empresa1 is set by factors. The company has the following objectives:

• Obtain the maximum benefit from the product they sell.
• Achieve maximum return on the investment made.
• Increase sales in the market.
• Be the leader in a segment or a product.
• Market segments at the start of competition.
• Create an image and reputation through the marketing mix.
• Get brands to better position themselves in the market.
• Obtain more benefits and price competitive differentiation.
• Stay in the market and evolve.

2. Marketing Mix

In the product, influences include (image, collateral design, additional services); distribution (type of establishment, event, and payment conditions); and communication (the most suitable for the product).

2. Factors Outside the Company

The market (segmentation, demand, fashion, circumstance, competition, possible agreements between undertakings), legislation (European Union, State Autonomy), and other factors (inflation, interest rates). People: (competition, distributors, suppliers, state, associations, workers)

Pricing Strategies

6.6 Strategies for Pricing

A. Strategies Based on Costs: Simple and widely used, this method estimates the total costs plus a margin of benefit you want to get, then divides by the number to arrive at the unit price.

B. Strategies Based on Demand:

• 1. Adjustment of Fixed Prices: No buyer is distinguished. Unique, tailored to a buyer.
• 2. Discounts: This is a normal reduction of the purchase price.
  • By Number: Starting with a number.
  • For Prompt Payment: Paid instantly.
  • For Bonus: Buy back my old product.
  • In Season: Sale.
• 3. Tactics of Differentiated Pricing of Prestige.
• 4. Psychological Tactics: This involves carrying out a rounding down if it is felt the product is of inferior category.
• 5. Product Lines: Price per pack. Price where a captive product needs another product.

Also find:

• Skimming: (a high price and a large advertising campaign)
• Penetration: (low prices to conquer more consumers)
• C. Tactics Based on Competition: Set the same prices, higher or lower.