Price strategies are lines to be followed by companies when establishing the price of their goods or services.
For practical purposes, it could be said that price strategies are included in the allocation of related marketing resources that a company performs when it comes to varying the prices of its goods or services. Through this type of practices belonging to their marketing plan , firms try to give an image to the market and customers that can be maintained and remembered over time.
The most common pricing strategies are based on pricing at different levels: lower, higher or equal to market prices depending on the initial intention and the image you want to transfer.
According to this criterion, the strategies that can be chosen in terms of price are:
- Penetration:With prices below the market value in order to create attraction and stimulate the customer to choose the product. It is very common in new products.
- Alignment:It is the easiest way because the good or service that enters the market does so with a price similar to that of its competitors and within the value that customers give it.
- Selection:This strategy offers a product with a higher market price, and of which consumers have a much higher value granted. Luxury or exclusive items are usually promoted through this type of marketing practice.
Within this basic strategy scheme, companies have the possibility of developing multiple variants when establishing their prices. Do not forget that the main purpose of this type of marketing mechanisms is the achievement of objectives or, in other words, increase your profit as much as possible.
How to choose the price strategy?
The choice of a particular type of pricing strategy does not necessarily require its permanence over time, since it is possible to alternate the different possibilities in response to frequent fluctuations in the market in which the firm works.
The importance of basing a marketing strategy on the price is that this variable of the marketing mix acts mainly in the short term thanks to its flexibility. The price is a parameter that allows the company to act quickly in its decision-making, as well as being a quality indicator that has been taken into account by the public.
The pricing strategies must also work together, in the sense that the pricing of the different products offered by a company must be designed with a certain level of consistency, since in many cases these are complementary products and their consumption is usually be simultaneous An example is that of a company that offers shaving products and sets the price of the blades well in proportion to its shaving foam.