A phase of the marketing mix is price now marketers have to establish what price the market is willing to pay for a product or service the...
A phase of the marketing mix is price now marketers have to establish what price the market is willing to pay for a product or service they may have to decide on the promotional activities that they're going to run during the year and that all has an impact on the price one of the things that you'll find in the digital domain is that the price is more transparent than it is in your bricks and mortar stores from a marketing perspective pricing is really really important because it helps build an image position your brand or service it could increase the market share
I if you reduce the price you could gain market share it may reduce competition you obviously would use it in your promotional activities and it could be used to help you survive there are a range of pricing strategies that you can employ some of them are customer value pricing psychological barrier pricing auctions going rate pricing tenders cartels reference pricing demand based pricing penetration pricing and even skimming now I'm not going to go through the details about this now but I will
write another article later date going through the whole concept of pricing in greater depth.
I mentioned pricing on the Internet is more transparent one of the things that you should look at is pricerunner as an example going to the site and look for a product that you're interested in it will show you the price differences across the different providers out there what this means is if you are using a higher price you need to make sure that your digital application is able to convince the potential customer that the additional value that you provide will exceed the price difference between the lower provider you
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