Marketing Science: Pricing And Pricing Strategy
Pricing and it is related to our strategy in setting product prices. As mentioned above, for products with a strong differentiation, we can set a premium price. For example, Harley Davidson or Porsche. There are also products that are sold at low cost strategy.
In addition, there are three types of pricing strategies. First is pricing strategy based on cost, which marketers determine the price by calculating the costs, overhead costs, and then adding with desirable profit margin. Second strategy is pricing strategy based on demands, or marketers determine the price after doing research about consumer desires and ensure that the price range is acceptable to the market target.
Last one is pricing strategy based on pattern of competition. This where marketers determine the price based on price conditions that are offered by competitors.
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