Pricing Strategy Assignment is aimed at helping you understand the pricing strategies used by different retailers in the industry. Whether it is a supermarket, convenience store, or online retailer, how they price their products will have a huge impact on their business.
Pricing strategy assignment
Pricing is a part of marketing. Proper pricing is vital in marketing strategy. Pricing is a vital part of marketing since a low cost of a product will not be profitable to a company. A pricing strategy assignment can be challenging for students. Why? They must do a detailed evaluation of the problem and understand the diverse price-setting mechanisms in a limited time.
Students can hire professional pricing strategy assignment help providers experienced in offering online support to students. Their excellent understanding of the subject allows them to provide assignment writing assistance easily. They can provide students with online solutions to assist with their pricing strategy assignment.
Pricing strategy – What Is It?
Price is amongst the four critical factors of a marketing mix. Channel decisions, product features, and promotion are the other factors. As a result, pricing in marketing is a vital strategic factor. It’s vital to product placement. It affects the other factors of a marketing mix.
A firm will choose a pricing strategy based on the purpose.
The fundamental aim is to maximize revenues.
- However, an incumbent firm can also set prices strategically to secure itself from prospective effects of a new item of a new firm
- The incumbent firm can set it such that it can capture a more significant market segment than the present market segment
- A firm moving into a new market can set it to capture as significant a portion of the market as likely
Whatever the case, the firm has to resolve if the prices maximize revenues at the unit or aggregate level.
Marketing has become different from what it was previously
Not a long time has passed since marketing was regarded as a strategy for selling a product or service, typically comprising advertisements. Moreover, these advertisements used to be reasonably elementary. They were not creative in any way. As the years have passed, the competition has grown to be considered intense.
Now, there are several alternatives and variants for a mere elementary good. As a result, it’s become very vital that the
- Customary standards of marketing are altered
- The domain is spread to uncharted parts to gain a viable edge over competing firms
The curricula of marketing for education is changing continuously
Marketing has been a major for learning for quite a while now. Nevertheless, research and regular deviation from theory has prompted a continuous change in the curricula. This dynamic character is present for all the correct reasons.
What could have been modest, conclusive techniques earlier, it’s important to teach future marketers further than these orthodox methods. It’s understood that marketing is a vital element of strategizing. As a result, it is vital to account for the actions. Pricing strategy theory is one such strategy.
Teaching price theories to future marketers
At present, buyers are very well acquainted with their surroundings. What do they do to act like rational human beings? They implement Ricardo’s theory. In other words, they make the finest selection for themselves.
Prices contribute significantly to establishing the sales of a specific product or service.
- Because of that, prices must be sufficient to ensure that the profitability of an organization doesn’t get affected
- However, simultaneously prices have got to be sufficiently reasonable to maintain a sufficient demand in comparison to its rivals
What is a good way of teaching pricing to marketing students?
So, the price of a product or a service is a determinant that marketing students should learn. The question is how to teach it well.
Case studies, and their evaluations, are amongst the most prevalent ways of teaching marketing students such matters. What is the reason to resort to this style of teaching? The primary reason is that they’re established as more applicable to the circumstance as many of them are true-life. There is another fundamental reason for resorting to this style of teaching. It is that case studies inspire the thinking capacity of the readers.
The explanation of the theories to the students makes it more suitable for them to implement them in such a circumstance. Many a pricing strategy assignment for marketing students involves case studies.
An excellent example of a pricing strategy that marketing students will be able to comprehend
Most of us have heard of Tesla, the auto producer. The first cars that the manufacturer launched were rather costly. The average cost of a car was more than $70,000. The technology of these cars was ground-breaking, and more and more wanted to buy one. A great many people had thought of purchasing a Tesla at some time or another.
However, at $70,000 apiece, many were not able to afford one. Now, why was the price of the car so high? The reason was the desire of Elon Musk and Tesla to form their version of difference by pricing the vehicle so high.
When did things change? After-sales started picking up and shoppers demonstrated that they were fine with the idea of paying significant amounts for the car. Tesla launched a more reasonably priced version at almost 50% of the price. All of a sudden, a significant percentage of the market was able to pay for a Tesla vehicle.
The cars got sold out very fast. It’s an excellent example for marketing students trying to understand the concept of pricing strategy. Why so? They can see just how things developed for Tesla Tesla and how the strategy helped form their brand identity.
Professional pricing strategy assignment help online helps marketing students
Picking a proper pricing strategy is amongst the most vital essentials of the marketing procedure. A company that sets the cost of a product very low cannot earn profit. What if a company sets the cost of the products very high with no forceful brand value? No one will be eager to purchase the products.
Professional pricing strategy assignment help online helps marketing students understand the diverse pricing strategies that are important. Students will have a good understanding of pricing theory and practices in handling B2B brands.
When determining the Price of a product or service, we talk about using a pricing strategy. However, before we start talking about pricing strategy, let us list the learning goals for this post.
- First goal is to establish a general understanding of the actual purpose of the pricing strategy. In other words, what is pricing strategy, and why do we need to know about it?
- Second goal, this post aims to provide you with an overview of the different available tools and theories that we, as marketers, can use when defining a price of a product or service.
In other words, how could we go about using a pricing strategy? So what is the purpose of pricing strategy? And what is the connection to the rest of the marketing mix? When you are asked to design the marketing mix, you need to make decisions on four or seven core elements, also known as the four of the seven Ps.
- First of all, any issues concerning the product would include packaging and all other elements connected with the product.
- Secondly, a decision on Price, which is what this post will address.
- Thirdly, you will need to decide on the choice of place and channels you will distribute the product or service.
- We will also need to plan which promotional activities we will carry out to tell our customers about our product and encourage them to buy.
If we’re dealing with an offering that is better described as a service or perhaps a product that includes large service elements, we might also want to look at the additional three Ps.
- The people that are involved in delivering the service.
- The process that our customers will go through to receive our service.
- The physical evidence, any visible or tangible elements that the customer will see here or in other ways experience when receiving the service.
None of the four or the seven should be decided on in isolation. However, Price is the P, which we will focus on in this post.
Purpose of Pricing Strategy
So what is the purpose of pricing strategy, and why is it important to make sure we charge the right Price? Let us imagine that we are opening up a new cafe in town. It’s a French cafe serving beautiful, decorative, and delicious cakes and specialties. We named the cafe the French cafe, leaving no one unsure of the type of cafe this is, we have appointed an educated and experienced confectioner, and he wants to impress our guests with his high-quality cakes and desserts. But he is a confectioner, not a marketing person, and he’s unsure of how to price his cakes and desserts. So let’s help him out. There are many reasons why charging the right price matters to the success of our French cafe. Firstly, we need to ensure that the Price makes sense to our chosen target group, that they perceive the Price to correspond with the way we have positioned the cafe in their minds. If we look in the window, we can see that this cafe serves high-quality, delicious French cakes and that it has a décor that fits. Therefore, it would send the wrong signal if we were to charge very low prices. Like offering an all-you-can-eat buffet for one euro, so charging a price that doesn’t correspond with the way we have positioned the cafe. It would leave our customers confused.
Drawing a link back to the other elements of the marketing mix, we can say that we need to make sure that our Price is in line with all other marketing mix elements. Secondly, we need to consider some financial circumstances about our chosen target group. And we need to consider how they are likely to value our goods and services. We need to charge a price which our chosen target group is both willing and able to pay. Thirdly, when looking at our overall strategies and objectives with this product or service, in this case, our cafe, we also need to make sure that the Price we chose supports the goals that we have set out to achieve with this cafe. And finally, we need to ensure that we generate adequate income to cover our costs and preferably make a healthy profit, either in the short term or in the long term, depending, of course, on our strategy. We have now established the purpose of the pricing strategy, what it is and why we need it. We have established that there are many factors which we need to look at before we can decide on the best Price for our product or service. So let’s move on.
As marketers, we have some different tools and theories to guide us when determining the Price. These will not be described in detail in this post. But let us introduce an overview of some of the tools we could use when determining the Price. Price elasticity can be looked at to what extent, if at all, will a price change impact the demand for our product or service? Secondly, cost-oriented pricing can be used. This is where we base our Price on the different costs involved in producing and selling our product. We can also use competitor-oriented pricing. This is where we base our Price on the knowledge we have about our competitors’ prices and activities. Another option is marketing-oriented pricing, which involves looking in-depth at how our customers value our product or service. Skimming or penetration strategies look at the strategy behind the combination of two things, namely a high or low price level and the promotional activity level. We can also consider our strategic objectives; whether we want to build, hold, harvest, or perhaps reposition a product impacts the price level we will choose. Finally, we can also look at some general market characteristics, some different conditions, and the pros and cons of charging a high or low price.
We have now established an understanding of the purpose of the pricing strategy. Lastly, we have presented an overview of the different tools and theories available to us when determining a suitable price for our product or service. To learn more about pricing strategy and how to use the different tools and theories introduced in this post, I recommend that you read Chapter 13, David Joppa and Fiona Ellis’, Chadwicks Principle and Practice of Marketing Management, Seventh Edition.