Marketing Principles price

Introduction (Write your own introduction)

Establishing value for customers is an important part of the marketing mix and is achieved through pricing strategies. The pricing of products and services must be executed in a certain manner to achieve successful sales, which create profit. Different products may require different strategies and may not always fit that product due to market conditions. A company must keep on top of its marketing strategies or risk failure in the market place (Grewal & Levy, 2007, p.426).

Profit Orientation (EXPLAIN and PROVIDE example with sources)

The profit orientation can be implemented in several ways depending upon the desired result. Companies using a profit pricing strategy will be looking to make revenue by creating a high profit margin for their products or services (Grewal & Levy, 2007, p.428). Target profit pricing, maximizing profit, and target return pricing are specific strategies used by firms when focusing on profit (Grewal & Levy, 2007, p.428).

Using a target profit pricing strategy will be an effective way for FEEL BETTER to maximize its profits and obtain a certain amount of sales, and creating revenue (Grewal & Levy, 2007, p.428). Since this pricing structure focuses strictly on profits, and not quality or market share, it will fit right into the target pricing strategy. Pharmaceutical companies will want to create high revenues to cover its expenses related to research, development, and bringing new drugs to the market place. Drug manufactures have seen the push for price regulations due to their high profit margins which makes this pricing structure viable for this company. (This section has been edited -- you will provide more detail about the market, and pricing strategy.)

Sales Orientation (EXPLAIN and PROVIDE example with sources)

Companies who want to base their success on the number of sales will likely use a sales orientation pricing strategy. Firms may set low or high prices to obtain certain sales numbers depending on what they are trying to achieve.

IN THE BAG is a manufacturer of women’s designer purses aimed at the woman who wants the best of the best. These bags are made from quality materials and come in limited designs ensuring that consumers will be carrying a unique bag. This is an existing product with several competitors.

Competitor Orientation (EXPLAIN and PROVIDE example with sources)

Competitor orientation is pricing strategy that firms use to set their price based on competitor’s pricing (Grewal & Levy, 2007, p.430). Companies using this pricing structure will watch the completion closely and at times mirror their prices making the competition tough.

Customer Orientation (EXPLAIN and PROVIDE example with sources)

Customer orientation value is a pricing strategy designed to offer value by, going above and beyond

Conclusion (Write your own conclusion with sources)

Setting prices is a crucial step in the marketing of products and services. Companies must also consider economic factors and internet competion. Customers must see value in a product and be willing to pay the set price for a company to be successful.

Bibliography

Levy, M., & Grewal, D. (2007). Marketing (4th Ed.). New York, New York: McGraw-Hill.