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Marketing - Coggle Diagram
Marketing
Price strategies
Skimming
It begins with high price. When a new unique product is introduced, it is possible to charge a high price at the beginning.
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Penetration pricing
The price will be set very low at the beginning.Setting a low price for a new product or service helps to sell and makes it easier for customers to try the product or service for the first time in order to increase the market share.
Like repeat purchases of mass market products such as tea bags, biscuits and so on.
Competitive pricing
If the price of a product or service is very similar to that of competitors’ similar product, the company may lower the price of that product in order to increase the competitiveness of the company's product.
In order to judge the level of a product or service, other ways customers can be used to compare are service quality and the time used.
Loss-leader
Selling some unmarketable products at a low price and even some of the price of the goods is the amount of loss.
Although it may not be profitable to sell this product, these prices can attract customers to buy other products with higher profits.
Cost-plus pricing
Cost-plus pricing is a price calculated by calculating the total cost of producing a product or service and then making a profit on the total cost.
For example, it is often used in the food industry, where it is easy to calculate the exact cost of ingredients.
Promotional
This is a kind of way to attract customers to buy products by carrying out some promotional activities when the products are just launched.
For example, offering activities with buying one to get one free or offering a second item at half price can attract customers, which can also help sell some unsalable products.
Product life cycle
Growth
After a period of development, the product has gained a certain popularity, and the average sales volume has also increased to a certain extent, so the profit has also increased significantly.
As the product grows, if it starts at a high price and becomes popular, the company will keep the price.If the price is low to begin with, it will stay low.
Maturity
When the market growth trend mature, it means that the product has been accepted by the majority of buyers.Profits had already peaked and are on a downward trend.At the same time, the current market competition is drastic, enterprises need to invest a lot of marketing expenses in order to maintain the position of the product.
In the current period, the sales speed of this product will slow down and more competitors will enter the market, so the enterprise may reduce the price, such as discount, to increase the market share.
Introduction
The product has just been launched. It’s sales capacity is not very strong and the cost of early investment is very high, so the profit can be obtained from it is relatively low.
When the product is introduced, if the enterprise wants to take back its costs in the short term, then the enterprise can choose to price it at a lower price, thus catching a large part of the market before it is occupied by other competitors.
Decline
During this period, the sales volume of products will decline significantly, and so will the profits.
In order to reduce losses during this period, the enterprise can choose to withdraw the product or sell it at a discounted price.
Development
Firstly, company should develop the product and then have zero sales during this period. The company's investment keeps increasing.
In this stage of development, enterprises should try to develop products targeted to the market, so that they have a strong sales ability after being put on the shelves.