Channel Pricing and Strategies Essay

916 WordsJan 21, 20134 Pages
Channel and Pricing Strategies MKT/571 Marketing January 12, 2012 Gary Queensberry Channel and Pricing Strategies Pricing is very important strategic element. The pricing strategies impinge on featuring products, channel decisions, and promotions. The researcher realizes there is no real determine pricing, following a life cycle for developing the pricing of So Sexy Organic Lip Balm product. First, develop market strategy – which the researcher evaluated and conducted a marketing analysis to identify the market segments, target market, SWOT analysis, and the market positioning. Second, marketing mix decisions – the researcher defined the product, contacted manufactures for distribution, and decided promotional tactics. Now the researcher is focusing on the cost productions, price of substitute products, and prices offered by the competition. The researcher notices that competitors change their prices often. Case scenario, competitors are always looking for a competitive match, this can be an advantage and a disadvantage for the business. Competitors may strategize a different packaging of their product; this can be good for So Sexy Organic Lip Balm by reducing their price. It’s all up to the customer wants and needs. The demographic crowd the researcher is focusing on would rather price reduction then a new look to a product. What if production price are rising? If production price is rising it’s up to the So Sexy Organic Lip Balm to determine the price increase without turning the customers to their competitors Pricing Strategies Two commonly known pricing strategies are skimming and penetration. Skimming is pricing policy by the producer to sell his product with initially for high price and then at decreasing rate over the time. Price skimming strategies is fundamentally a demand for the offering either by the market as a whole or by segment. High

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