Pricing - Pricing A controllable variable Pricing strategy...

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Pricing A controllable variable Pricing strategy forms another cornerstone of global marketing program Represents the most complicated area of decision making (economic financial and profit) Price is only marketing mix element that generates revenues. o Globally develop policies considering: Price Floor- Minimum Price Price Ceiling: Maximum Optimum Prices- Function of demand ( what the product is worth and the quality) Determine pricing objectives desired o Unit sales o Market share o Return on Investment Develop pricing strategies to achieve those objectives o 1. Penetration Pricing- Using a low entry price compared to completive offerings o Market Skimming – the use of high price elative to competitors May occur at the introduction stage of product life cycle (Must be an exclusive product) Luxury goods marketers use price to differentiate products. Ex LVMH, Gucci, Prada Also often used by firms introducing a distinctive good with little or no competition
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