Pricing Strategies : Pricing Strategies Introduct

Pricing strategiesName:Institutional affiliationPricing StrategiesIntroductionAs a marketing strategy, pricing involves setting prices that are both acceptable and profitable. It an essential element of the 4p marketing-mix alongside product promotion place and product. Prices are influenced by factors such as; competition, the nature of the market, quality of the product, brand power and the cost of producing the product. Good pricing strategy should balance between the price floor and the price ceiling. Common strategies include; manufacturer suggested price, keystone pricing, multiple pricing, discount pricing, loss leading and psychological pricing. Types of Marketing StrategiesManufacturer suggested priceThe manufacturers recommend the price that the retailers can charge for the commodities with the aim of standardizing rates across different locations. This amount is called the Manufacturer suggested price or suggested retail price. However, the retailers may price the goods higher or lower than the recommended price. In a competitive market, retailers may reduce the cost of inventory by purchasing in bulk, and maximize on sales volume for profits. In the United States, the manufacturers are empowered by the Fair Trade Statutes to suggest prices to protect the smaller retailers from unfair competition by