The price strategy is a variation of the price of a commodity in dynamics, based on market conditions and the purpose of the enterprise. Price strategies in marketing on the one hand are the condition for positioning the goods, and on the other - it is formed under the influence of certain factors:
- market structure;
- the organization's position in the market;
- based on the life cycles of the product;
- uniqueness of the goods;
- the ratio of price and quality;
- competitiveness of the goods.
These factors determine only the general aspects of the formation of prices. In practice, price strategies in marketing are formed taking into account the reputation of the company, the popularity of the product, as well as advertising. The strategy is determined based on the product life cycle. Under the influence of this factor, the price strategy needs to be changed. At the stage of product introduction, different types of strategy are distinguished .
At the growth stage, competition is increasing. This is due to the fact that the company is beginning to fight against players who were previously present in the market. During this, the company tries to form additional sales 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, the modified products enter new markets, amplify the impact of advertising in order to provoke a repeat purchase. At the stage of maturity, the sale of goods stabilizes, there are stable buyers of the goods. At the stage of saturation with the product, sales are stabilized and supported by repeated purchases.
Important is the search for segments that are not yet involved in purchases, new buyers, options for the application of the product to sustainable buyers. Measures to increase sales are used to prevent the stage of sales decline. Improves the quality of the goods, it is modified. In some situations, it is possible to reduce the price to make the product more accessible to customers.
Pricing strategies in marketing are used depending on the characteristics of the goods. They depend on the level of prices 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 enterprise. There are three main types of marketing strategies:
- strategy of undifferentiated (mass) marketing;
- strategy of concentrated marketing ;
- The strategy of differentiated marketing.
The first, the strategy of undifferentiated marketing, is used by large companies that have significant working capital. It will be effective only if large volumes are received. In accordance with this strategy, one type of product is presented to the whole market. And the task of marketing actions is to ensure its attractiveness in most market segments.
The strategy of concentrated marketing 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 gain advantages in a narrow segment due to the high individuality of the product and the satisfaction of the needs of consumers.
The strategy of differentiated marketing is a trade-off 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 used by those organizations that started with the other strategies listed above, since it, if properly organized, shows positive results.