The pricing strategy represents the options for changing the price of goods in dynamics, based on market conditions and the goals of the enterprise. Pricing strategies in marketing, on the one hand, are a condition for product positioning, and on the other, it is formed under the influence of certain factors:
- market structure;
- position of the organization in the market;
- based on the product life cycles;
- uniqueness of the goods;
- value for money;
- product competitiveness.
These factors determine only the general moments of price formation. In practice, pricing strategies in marketing are formed taking into account the reputation of the enterprise, the popularity of the product, as well as advertising. The strategy is determined based on the life cycle of the product. Under the influence of this factor, the pricing strategy needs to be changed. At the stage of product introduction, different types of strategies are distinguished .
At the growth stage, competition intensifies. This is due to the fact that the company begins to fight with players who were previously present on the market. During this, the company tries to form additional distribution channels, including the organization of its own channels. At the same time, prices do not change. The company strengthens its influence on sales growth, for which: it tries to improve the product, enters modified goods into new markets, and enhances the impact of advertising in order to provoke a re-purchase. At the maturity stage, sales of goods are stabilized, stable buyers of goods appear. At the stage of product saturation, sales are stabilized and supported by repeat purchases.
Of great importance is the search for segments that are not yet involved in purchases, new customers, options for laminating goods with steady customers. To prevent the stage of decline in sales, measures to strengthen sales are used. The quality of the product is improving, it is being modified. In some situations, a price reduction is possible to make the product more accessible to customers.
Pricing strategies in marketing are used depending on the characteristics of the product. They depend on the price level for a new product or for a product that already exists on the market.
Pricing strategies in marketing affect the choice of segments depending on the strategy chosen by the company. There are three main varieties of marketing strategies:
- a strategy of undifferentiated (mass) marketing;
- concentrated marketing strategy ;
- differential marketing strategy.
The first, undifferentiated marketing strategy, is used by large companies that have significant working capital. It will be effective only when receiving large volumes. In accordance with this strategy, one type of product is presented to the entire market. And the task of marketing actions is to ensure its attractiveness in most market segments.
A concentrated marketing strategy is effective with limited resources. The goal of this strategy is to concentrate resources and marketing efforts on the target single market segment.
Using this strategy, you can get benefits in a narrow segment due to the high individuality of the product and the satisfaction of consumer needs.
The differential marketing strategy is a compromise between the above approaches. Using this strategy, you can target several target segments, but for each you need to develop a separate marketing plan. Often this strategy is applied by those organizations that started with the other strategies listed above, since it, when properly organized, shows positive results.