What are the advantages of the market to market pricing strategy for financial products?

Financial products. Strategy is a strategy for commercial banks to formulate a strategy that can not only attract new and old customers to the greatest extent, but also obtain the maximum profit. There is not just one pricing target for commercial banks, but a variety of them.

It can be aimed at expanding the current profit, and it can also expand the market share.

Aiming to expand long-term profits, you can also achieve a higher return on investment.

or to cope with and prevent competition.

The method of pricing bank products should be based on the cost of the product, and be determined flexibly in the light of supply and demand and the degree to which customers are willing to pay. In terms of specific practices, a variety of pricing strategies can be adopted, such as pricing according to the face value of financial products, pricing according to different stages of the life cycle of the financial product market, pricing according to different times, different places, different customers, and different transaction methods, pricing according to the accompanying market, and pricing according to customer psychology.

The official website shall prevail.

The on-the-go pricing strategy method is also known as the prevailing method. Enterprises that adopt this method mainly determine their own products according to the dominance of similar products in the market, so that their products are basically consistent with the competitive products in the market.

Advantages of this method: A prudent pricing strategy method, the company's best can reflect the profit and loss situation and profit level of the entire industry.

To a certain extent, it can avoid the ** war between peers. Regardless of cost and demand conditions, the pricing strategy is simple and easy to implement. Disadvantages of the method:

Only consider the best in the same industry and ignore the specific situation of the enterprise itself. Long-term follow-up to the market is also not conducive to the cultivation of financial enterprises' own pricing strategy capabilities. In general, this method can be considered in the following situations:

difficulty estimating costs correctly; It is difficult for enterprises to understand the market demand; Businesses want to avoid fierce market competition.

1. Cost: Since cost is the basic factor affecting products and services, it is a pricing strategy.

When the first factor considered by the enterprise, or the cost determines the lowest line, the enterprise generally does not formulate the price strategy at a price lower than the cost when pricing the strategy.

Cost accounting is also very important for financial companies. Only by improving the cost accounting system can we determine the minimum ** of the product. Of course, the same quality financial products are offered.

At the same time, the lower the cost, the greater the pricing strategy range and the greater the autonomy of the pricing strategy of its financial products.

Second, market demand: marketing theory believes that the best quality of the product is determined by market demand. When a certain financial product is sought after by customers, its trend will inevitably rise, so financial institutions should start from the potential needs of customers, design products that can meet customer needs well, so as to help products develop better quality.

At the same time, market demand is also affected by the most elasticity.

Under the influence of this factor, different products have different elasticity. If the change in demand is greater than the change in **, then the product is considered to be elastic, and the low price will have a certain effect; On the contrary, if the product is inelastic, it means that the change in demand is less than the change in **, which can be seen from a certain level that consumers are not highly sensitive to **, so the low price at this time may not be able to achieve the desired effect.

3. Competition: When customers consume, they tend to compare the quality of products provided by their competitors, especially the comparison. Therefore, before carrying out pricing strategies, financial institutions should fully refer to the existing product information of competitors, and actively promote the future trend of competitors in the same product, so as to provide an objective basis for their pricing strategies.

Among the above three factors, cost determines the lower limit of the price strategy, market demand determines the upper limit of the price strategy, and the situation of competitors is the key factor for enterprises to refer to in their pricing strategy. Of course, the pricing strategy of financial products is also affected by policies and regulations. In China, the pricing strategy of financial products is not completely free, and policies and regulations will restrict the pricing strategy of products, so financial enterprises must pay close attention to the introduction of various financial policies.

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We're happy to answer this question: What type of market is follow-the-leader pricing best suited Follow-the-leader pricing is typically appropriate in oligopolistic competitive markets where there are a few dominant firms. In this kind of market, due to the large market share occupied by some leading companies and the high loyalty of final consumers, it is difficult for other companies to quietly adopt the best strategy to fight for more market share.

Therefore, other companies will closely follow the leading company's strategy and keep their pricing in line with that of the leading company to avoid losing customers at the age of unbridled customers. This pricing method emphasizes that the pricing strategy adopted by the dominant players in the market has a large impact on the overall market. If there is no dominant player in the market, or if the dominant firm's pricing strategy does not affect other firms, the market-to-market approach may not be applicable.

It is important to note that strictly using the on-the-go pricing method as the primary pricing strategy is likely to reduce market share and profits, as it may not be conducive to increasing the competitiveness and brand awareness of the enterprise. Enterprises need to comprehensively consider the market chain and other competitive strategies when adopting the market-to-market pricing method, so as to better adapt to market changes and gain market advantages.

Homogeneous products. The market-to-market method applies to homogeneous products. A is false B is correct.

The answer is: true.

According to the market competition pattern, enterprises generally adopt industry leaders or industry averages. Reference model industry pricing is the most common type of pricing method in competition-oriented pricing. The average level is often regarded as "reasonable" in people's concepts, and it is easy for consumers to accept it

trying to make peace with competitors and avoid the risks of fierce competition; Generally, it can bring reasonable and moderate profits to retail stores.

The market-to-market pricing method is applicable to the determination of homogeneous commodities such as rice, flour, cooking oil, and certain everyday necessities. However, it should be noted that this law requires that the production cost of the enterprise is roughly close to the average cost of the industry.

This approach is based on market segmentation, which believes that the degree of customer demand in different market segments is different, and enterprises should formulate different products according to the degree of difference in customer needs**. For example, some customers pay attention to the brand of the product, and some customers pay attention to the best of the product. For customers who value the product brand, companies with a higher brand and reputation can formulate a higher **, so that consumers can strengthen their confidence in the company.

For customers who attach importance to the best products, on the basis of ensuring quality, we should try to simplify the service, so as to reduce the cost and ultimately reduce the selling price. The differences in customer needs are mainly reflected in the following aspects.

1) Customer differences. Because customers with different occupations, classes, ages and incomes have different needs for financial products, they can be formulated differently for different customers to increase sales revenue. For example, according to the contribution rate of customers to the bank's profits, customers can be divided into high-end customers, mid-end customers, and low-end customers.

When applying for a credit card, different cards have different overdraft limits. For example, the interest rate of a certain bank's mortgage loan is more favorable for professionals and senior civil servants than for ordinary customers.

2) Regional differences. Customers living in different regions have very different requirements for financial products due to their different environments, so the product ** should also be reflected. For example, there are certain differences in financial products in the western, central and coastal areas of China.

3) Time differences. The demand for products from customers in different periods is not consistent, so the products can also be adjusted appropriately according to the time difference. For example, commercial banks give different deposit interest rates to customers with different deposit tenors.

The biggest advantage of this pricing strategy is that it meets the market demand and is conducive to the maximum economic benefits of the enterprise. The difficulty is that the process of formulating a price strategy is cumbersome and requires more considerations.

Differential pricing strategy refers to the use of different pricing strategies for the same type of products, and enterprises that adopt the differential pricing strategy method need to formulate a product that is lower or higher than that of competitors according to their own characteristics.

1) Differential pricing strategy for product forms. Enterprises develop different products according to different models and different styles, although the difference between different models of products and the difference between costs is disproportionate. For example, a bank provides two kinds of cards, one is the Lingtong card and the other is the peony card.

If the customer sends money via Lingtong card, the handling fee is 1% of the amount sent. The Peony Card, on the other hand, does not have a remittance fee.

2) Channel differential pricing strategy. Channel differential pricing strategy refers to the development of different channels for different channels, which is related to the strategy of the enterprise. Take a bank's remittance fee as an example.

If you go through a branch bank, the minimum handling fee is 5 yuan, and more than 1,000 yuan will be charged. If the remittance is made through online banking, 5 yuan will be charged for each remittance and 10 yuan will be charged for inter-bank remittance. This shows that the bank is aggressively expanding its online banking business and hopes to increase sales through online channels through differentiated pricing strategies.

In addition, pricing strategies can also be based on different points of difference, such as image differentiation pricing strategy, location differentiation pricing strategy, time differentiation pricing strategy, etc. It is necessary to do a good job of careful analysis and investigation of customers, market conditions, and competitors to find the real points of difference, so as to truly give full play to the advantages of the differential pricing strategy method.

If the market-to-market pricing strategy method is a defensive pricing strategy method, the competitive pricing strategy law is an offensive pricing strategy method. The competitive pricing strategy method refers to a pricing strategy method in which financial enterprises take the initiative to attack by using the best factors to gain competitive advantage through their advantages. Using this pricing strategy method, financial enterprises need to fully understand the corresponding strategies and product characteristics of competitors, and then find out the advantages of their own products, as a way to formulate aggressiveness.

This method is suitable for enterprises with strong competitiveness or product characteristics.

There are two specific forms of pricing using the market-to-market pricing method, one is to fluctuate with the fluctuation of large enterprises in the leading position in the industry; The other is to fluctuate with the fluctuation of the average level of products in the same industry. In the case of fierce competition and complex market supply and demand, it is difficult for a single enterprise to understand the reaction of consumers and competitors to the changes. It is also easy for competitors to coexist peacefully in various industries, avoid wars and retaliation between competitors, and also help promote the stable development of the entire industry in a harmonious atmosphere.

This approach can be used to follow the market leader in pricing, as well as to adopt the general level of knowledge in the market. This depends on the characteristics of the company's products and the market differentiation of its products. For example, in a market similar to perfect competition, enterprises can only follow the established **** goods, and have no ability to control prices.

At this time, enterprises mostly adopt the market-based pricing method, that is, they are always consistent with the market level, and chase the changes in the market through quantity adjustment, and obtain the necessary profits by reducing circulation costs.

Some small businesses tend to use the market-to-market pricing method. They change their own **, not so much according to their own needs or cost changes, but according to the ** changes of the market leaders. Some businesses can pay for tiny giveaways or tiny discounts, but they keep the right amount of difference.