Strategic Pricing: Factors that affect strategic pricing

Summary. 1. External factors: market demand and market structure; competitors** and product quality; National policies and laws and regulations.

2. Internal factors: cost; marketing objectives; Marketing mix strategy.

The impact of a perfectly competitive market on business pricing.

market demand and market structure; Competitors' best filial piety and product quality; 2. Internal factors: cost; camp round stool pin target; Marketing mix strategy.

The fully competitive market, also known as the pure competition market or free competition market, refers to a very large number of production or sales enterprises in an industry, which all provide the same and standardized products to the market in the same way, such as grain, cotton and other agricultural products, and the seller and the buyer cannot control the goods or services. In this competitive environment, since both buyers and sellers have no influence on the company, they can only be the recipients of the company, and any price increase or price reduction behavior of the enterprise will cause a sharp decrease in the demand for the company's products or unnecessary loss of profits. Therefore, the product** can only be determined by supply and demand.

The main differences between a pricing decision strategy and a pricing decision method are as follows:

First, the nature is different. The pricing strategy belongs to qualitative analysis, and the pricing decision method belongs to quantitative analysis.

Second, the basis is different. Pricing strategies are largely empirical, and pricing decision-making methods must rely on pricing models.

In the pricing strategy, there are three common pricing methods: cost-oriented pricing, market-oriented pricing, and customer-oriented pricing.

A critical component of the marketing mix. **Often an important factor in the success or failure of a deal, it is also the most difficult factor in the marketing mix to determine.

The goal of enterprise pricing is to boost sales and make a profit. This requires enterprises to consider both cost compensation and consumer acceptance, so that the pricing strategy has the characteristics of two-way decision-making between buyers and sellers. In addition, it is the most flexible factor in the marketing mix, which can respond sensitively to the market.

1.Market segmentation: Market segmentation is the primary factor in the implementation of differential pricing strategies, because different markets have different needs, and there will be different returns.

2.Competitors: The pricing strategy of competitors is also an important factor in the implementation of differential pricing strategies, and enterprises can formulate their own pricing strategies based on the pricing strategies of competitors.

3.Product characteristics: The characteristics of the product are also an important factor in the implementation of differential pricing strategies, and enterprises can formulate different pricing strategies according to the characteristics of the products.

4.Consumer psychology: Consumer psychology is also an important factor in the implementation of differential pricing strategies, and companies can formulate different pricing strategies according to consumer psychology.

5.Technical level: Technical level is also an important factor in the implementation of differential pricing strategies, and enterprises can formulate different pricing strategies according to the level of technical skills.

The primary factor in the implementation of the differential pricing strategy is mainly to consider the basic economic factors of the market, including the consumer's consumption preferences, changes in sales volume, and comparison with other potential competitors. At the same time, it is also necessary to consider the base cost on which the closing price is based, as well as other factors that grasp the market, in order to effectively develop a profitable pricing strategy.