Pricing Objectives and Strategies
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- čas přidán 6. 08. 2024
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Every business maintains a specific pricing objective or goal that dictates the decisions that they make with regards to price-setting. Within each pricing objective, businesses have several strategies designed to assist them in achieving their objectives.
In this video, we'll discuss four of the common pricing objectives as well as highlight several strategies within those objectives.
I've watched most of your series of courses over the day and have the impression that I've refreshed most of my memories from a whole marketing semester. Thanks so much for your amazing input!
I’m falling asleep reading useless extra information from my book and this video helped me regain my will to live 🙏🏼 thank you
I feel the exact same way
thank you!
Just recommended your channel in my business group. You should be getting a lot of subscribers tonight👍
Such a great help. Thank you
This is such a helpful concepts through all these pricing strategies! Thanks for sharing!
Thanks Matt that was great. I really helped me to take few steps back and re-strategize.
Great video to get ready for Strategy Case Interview.
You're very welcome! Glad I could help.
your videos will make me pass my exams with good marks... thanks a ton :)
Love your videos! Wish I had seen these earlier.
Thank you very much for all your fantastic educational videos!
+Miguel Gizman You're absolutely welcome Miguel! Thank you for watching and taking the time to comment.
Very good!
Thank you it made me understand easily
Venkat Ram I'm glad to hear that! Thanks for watchings.
Hello Matt, Would this be the same process when calculating the price for stocks? If not, Do you have a video that shows that?
Is there a video that you have that can help as your videos really help me as I am a visual learner.
Thank You Matt.
John
what is one way a company can charge high cost for its items? (the answer is not premium pricing strategy)
@ john I think that's more uour statistical measures
Pricing strategy during PLC?
My book shows these.
- Premium. Expensive to make something seem exclusive.
- Penetration. Low prices to lure customers away from competitors. Build market share.
- Economy. Cheap but planning to sell to loads of people.
- Skimming. Low prices to gain customers, to later slowly but surely raise prices.
Are there different words for these strategies?
+Lisa R Skimming is typically used on new products to cover developmental costs. This involves charging high prices and gradually lowering them as demand for the product decreases. I have a good series on pricing strategies. Check it out for more information.
In my assignment, I am trying to calculate stock prices, how dividend payouts and share repurchases are calculated, ex-dividends and effect the values existing shares owned by current share holders.
Notes:
Keep in mind the psychological impact of price: low prices give off the impression of low quality or low value, high prices give off the impression of high value or high quality
Build profitability by adding up the variable and fixed costs and subtracting them from revenues.
Boost volume of sales by penetration pricing (initial extremely low prices to grow market share). Or you can use everday-low pricing (maintaining consistent discount prices to achieve long-term profitability). You can also use high/low pricing (special sales to maintain traffic). Finally, you can use loss leader pricing (price items temporarily below cost to boost traffic). In loss leader pricing, it can encourage buying additional add-on prices.
Matching competition is the simplest objective to accomplish. Just match the market leader. Not recommended if you're going up against big companies.
Pricing for prestige is the last pricing objective. You just want to show people that your product is high-value. The strategy is price skimming (skimming off the top with premium prices). Companies may use skimming to recoup development costs. Skimming can only be used when there's not many competitors or substitute products.
How about survival, isnt it part of the pricing objectives?
Depends on who you talk to. I see it included in some resources but not in others. Very similar to the other strategies involved in boosting volume with simply a different title.