Pricing strategy is dynamic in nature and should reflect changing condition in competition as well a

Pricing strategy is dynamic in nature and should reflect changing condition in competition as well a

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Pricing strategy is dynamic in nature and should reflect changing condition in competition as well as the market. Overall price strategies follow six step model: Step 1: Pricing can facilitate in achieving the positioning objectives of the company. If the company is facing tough competition or running at over capacity then price would be set taking into account the variable cost and some part of fixed cost. This strategy is a short term in nature. If the company is looking forward to maximizing profit then it sets higher price by considering competition and cost. This strategy has risk of running into trouble with consumer or legal issue. If the company is looking forward to improving and maximize market share then it will set lower price as to generate maximum volume. Companies looking forward to introducing new technology and revolutionary product look to set market skimming price. Step 2:
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Pricing strategy is dynamic in nature and should reflect changing condition in competition as well a

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