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Pricing Strategies in Marketing Today - Pricing at The Speed of Light

Pricing strategies in marketing today have evolved with the society.
We have gone from the production concept to societal concept.
There are a lot more choices today which in turn have made people less loyal to brands.
Whole industries such as media, banking, and publishing have undergone so much transformation courtesy of the internet.
Pricing strategies and changing lifestyles With consumers now demanding instant gratification a premium has been placed on time, making the one who can delivers the product that works faster the king of the hill.
Pricing strategies and the shrinking distance The world is now a global village and price differences among territories are no longer as stark as they used to be.
Another effect of global trade is that there is a lot more outsourcing of production, which has in turn made companies find ways to keep their prices down in order to remain in business and also not to encourage new competition.
Pricing is less influenced by scarcity and more about quality.
Pricing strategies and Technology A one-off leap in technology can no longer guarantee a long-term competitive edge.
As a result, price skimming can only be carried out at very short periods, if at all.
Shorter production cycles and outsourcing mean that the competition - and customers - can react faster.
Pricing strategies and traditional channels The internet has reduced the distance between manufacturers and consumers.
It has also opened up a new channel of distribution.
While the availability of many brands has increased the bargaining power of channels the internet has removed some of that.
As a result the big channels have grown bigger while smaller ones have virtually been wiped out.
Traditional distributors and dealers have had to invest more on retaining their customers and no longer just break the bulk.
Pricing strategies and the post dotcom era The biggest models offer free services to their customers first.
Google, Facebook, Craigslist all give a lot of useful free services to its users and then charges advertisers to promote their products to these users.
In addition, these companies compete against each other in different markets and market segments.
For example Google competes with Microsoft in the software business, with Yahoo in the search business and with Nokia in the smart phone business.
Convergence of technology has also made it difficult for businesses to define the businesses they are in narrowly.
The way to deal with these changes is to see them as opportunities to come up with unique pricing strategies for marketing in this modern age.

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