Literature Review on Pricing Strategies and Theories.
An analysis of pricing strategy reveals that companies have a range of options in their pricing toolkit they can use to augment their marketing initiatives. Pricing strategy refers to method companies use to price their products or services.Non-price competition focuses on other strategies for increasing market share (advertising and sales promotion policies, and collusion and cartels). Cost-Plus Pricing Average cost pricing is defined as where a firm charges a price explicitly with reference to average costs plus a percentage profit mark-up.The pricing uses a standard price worldwide. Introduction of new products to the market requires total commitment so as to win the customer’s interest. Getting to the business world is more complex, therefore going for a product that is unique gives high chances to be successive. Introducing the product, the best pricing strategy to go for is.
Target pricing strategy is calculated to produce a particular rate of return on investment for a specific volume of production. It is often used by public utilities and companies with high capital investment. These methods of pricing all the cost incurred are recovered. This is a form of cost-plus pricing.Alternative Methods of Teaching and Learning Strategies. Discussion. This method is not very appropriate as the subject is technical and requires some under pinning knowledge. Opinions are not normally expressed as the material is factual. However this method could be used at the end of an exercise or at the end of the course.
Non-price competition involves advertising and marketing strategies to increase consumer demand and develop brand loyalty. Explaining non price competition in an oligopoly Businesses will use other policies to increase market share.
