Pricing strategies in competitive markets. Think about what happens in our count
ID: 2581544 • Letter: P
Question
Pricing strategies in competitive markets. Think about what happens in our country, and according to the market types find products or companies that fit or belong to each market type Build the matrix or table where you expose or define the pricing strategy available and the type of market. Use Arial font 12, with space of 1.5 Look for credible and official sources that expose the subject in question. Make your own evaluation of the documentation found, not just copy and paste. Cite the sources usedExplanation / Answer
Pricing Strategy - pricing strategy is a plan action designed for setting a competitive price of a product or a services by analysing the economic and market condition of the product or service combining with marketing mix strategies that is products, price, place & promotion.
Following matrix shows the pricing strategies in the competitive market :
Type of pricing strategy
Definition
Types of market
Definition
Companies fit to market type
Pricing at a premium
A premium pricing strategy means charging a price of a product higher than the similar products
Monopoly
market
In a pure monopoly, there is only one producer of a particular good or service, and no reasonable substitute. In such a market system, the monopolist is able to charge whatever price they wish due to the absence of competition, but their overall revenue will be limited by the ability of customers to pay the price.
Luxottica, Unilever,Monsanto
Etc.
Pricing for market penetration
The pricing policy using a low price as the principle instrument for penetrating mass market early
Perfect Competition
Perfect competition is a market system characterized by many different buyers and sellers. There are an infinite number of buyers and sellers and also infinite alternatives to choose.
Local agriculture market,
Fruits and vegetables market
Economy pricing
It is a policy in which a low price is assigned to a product with decreased production cost.
Monopolistic
Market
It is a type of market system combining the characteristics of monopoly and perfect competition
Nike, addidas, reebok,
Barnes and nobles etc.
Price skimming
It is a policy where the prices are kept high during the early period of a product`s existence and in the latter years the prices can be gradually reduced.
Oligopoly
market
An oligopoly is similar to a monopoly. The main difference is that rather than having only one producer of a good or service, there are a handful of producers, or at least a handful of producers that make up a dominant majority of the production in the market system.
Apple, Motorola,amazon, united airlines, virgin America etc
Psychology pricing
It is the practice of setting prices slightly lower than rounded numbers.
Departmental stores for clothings.
Bundle pricing
It is policy in which several products or services are combined into a single package for an all in one inclusive reduced price.
Mcdonalds, Kfc etc
Type of pricing strategy
Definition
Types of market
Definition
Companies fit to market type
Pricing at a premium
A premium pricing strategy means charging a price of a product higher than the similar products
Monopoly
market
In a pure monopoly, there is only one producer of a particular good or service, and no reasonable substitute. In such a market system, the monopolist is able to charge whatever price they wish due to the absence of competition, but their overall revenue will be limited by the ability of customers to pay the price.
Luxottica, Unilever,Monsanto
Etc.
Pricing for market penetration
The pricing policy using a low price as the principle instrument for penetrating mass market early
Perfect Competition
Perfect competition is a market system characterized by many different buyers and sellers. There are an infinite number of buyers and sellers and also infinite alternatives to choose.
Local agriculture market,
Fruits and vegetables market
Economy pricing
It is a policy in which a low price is assigned to a product with decreased production cost.
Monopolistic
Market
It is a type of market system combining the characteristics of monopoly and perfect competition
Nike, addidas, reebok,
Barnes and nobles etc.
Price skimming
It is a policy where the prices are kept high during the early period of a product`s existence and in the latter years the prices can be gradually reduced.
Oligopoly
market
An oligopoly is similar to a monopoly. The main difference is that rather than having only one producer of a good or service, there are a handful of producers, or at least a handful of producers that make up a dominant majority of the production in the market system.
Apple, Motorola,amazon, united airlines, virgin America etc
Psychology pricing
It is the practice of setting prices slightly lower than rounded numbers.
Departmental stores for clothings.
Bundle pricing
It is policy in which several products or services are combined into a single package for an all in one inclusive reduced price.
Mcdonalds, Kfc etc
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