When working in market conditions, it is important for any company to carry out the correct pricing in marketing. Product pricing is a rather complicated process, which depends on many factors. The choice of the direction of pricing, approaches to pricing to ensure sales volumes, increase profitability and strengthen the company's position in the market is the most important direction of marketing actions.
Adequate pricing in marketing is the key to the profitability of the enterprise, since the results of decisions on setting prices can be decisive, both in terms of profit from sales, and in terms of losses incurred.
When developing a pricing strategy, it is important not only to correctly set the price of products, but also to form a strategic line, taking into account the peculiarities of pricing, for the entire range of products.
A long-term pricing strategy will become the cornerstone on the basis of which marketing pricing will be formed. The strategic line of pricing will allow the organization to determine the expected amount of profit, market share in the future, which means it will provide a certain temporary and financial reserve for influencing the situation on the market.
In the literature on marketing, six stages are distinguished, on the basis of which pricing is formed in marketing.
At the first stage, the demand for goods is determined . Demand indicators are set relative to the price of goods in a particular segment. Potential opportunities are determined, economic and psychological, purchases of goods by the buyer at the proposed price. At the second stage, the company chooses the best price for itself, which will ensure the maximum level of marginal profit. At this stage, the most favorable prices are established for the manufacturing enterprise. Costs are calculated using direct costing of products to determine the price of the goods. The indicator of production costs determines the ability to meet the needs of all consumers with a profit for the organization.
At the third stage, the price of the goods is compared with competitors' products, and the corresponding adjustment is made according to quality parameters and other components. If necessary, it is necessary to carry out price adjustments in response to competitors.
At the fourth stage, the price threshold is determined, as well as the possible conditions for reducing the price. But the main key to lowering prices is reducing production costs. It is justified to reduce the price of goods at low capacity utilization, the threat of lower sales during aggressive competition, filling warehouses and more.
At the fifth stage, price ratios between various goods are determined, price lines are established associated with the sale of goods in the range where the price of the goods reflects the level of quality and so on. Its structure is also formed.
At the sixth stage, price tactics are developed. It includes:
- a single pricing policy for various products;
- tactics of a loss-making leader, in which the company sells some of its products at a reduced price to attract consumers to the entire range of products that are sold at regular prices;
- organization of sales.
Also at this stage, consider the necessary options for discounts / surcharges to the price depending on the volume of sales. As you can see, all stages of the pricing process are very important and play a certain role in the formation of enterprise profits .