The essence of marketing pricing policy

Marketing

Marketing price policy - a set of measures to determine the selling price, discounts, terms of payment for goods or services, price management with the wishes and opportunities for consumers and at the same time ensuring the profits of the enterprise-producer or seller.
The price paid for the goods and services consumers have different names: the fee (tuition, apartment rent), interest (on bank credit intermediation), premium, fee, fare (fare or freight), advance fee, salary. In any event, in terms of marketing the price - this is money or some other consideration that its offer for the assignment of ownership or use of goods (services).
Price policy is traditionally one of the key elements of marketing for several reasons. First, the price - one of the main tools in the competition. Second, the appropriate price level enables the manufacturer to sell a product, receive appropriate income and profit and the consumer to purchase this product and use it for their own needs. Third, the price - it is simply and accurately measured variable, which is traditionally used in all calculations of economic enterprise. Fourth, price - an important prerequisite for the achievement of its strategic goals now (market development or strategic spaces). Fifth, the price in a market economy is a reliable leveler supply and demand of goods.
The role and importance of marketing the pricing policy of the company is strongly dependent on the type of market. The biggest is its role in the market of monopolistic (imperfect ") competition, where the number of competitors is relatively small, their strength about the same, but the goods are sufficiently differentiated. Monopolistic competition encourages businesses to use differentiation strategy based on foreign competitive advantage, that is the distinctive qualities of goods which provide adequate benefits for consumers, and therefore should be offered to consumers at appropriate prices.
A somewhat smaller role of marketing pricing on olihopo- flax market. A small number of sellers who immediately respond to pricing competition, difficulties in this market penetration lead to every entrepreneur wanting to change the price, focuses primarily on the possible response of other companies.
Insignificant role of marketing and pricing policies of pure (perfect) competition. The main reason - the presence of the market price, which is installed automatically due to the large number of sellers and buyers, acts of sale, supply and offerings. The main objective marketing policies in this market - to monitor the volume of demand and supply, price dynamics.
The minimum is the role of marketing pricing policy on the market of pure monopoly. Here, considering that the market is dominated by one commodity, which prevents a large number of customers, existence of restrictive government regulations, price may be a lower and much higher than the cost of goods.
In general, since the 70 p. XX century., The value of marketing pricing, however, began to decline for several reasons. The most important was that in the representation of consumer price is often seen as an indicator of value. Therefore, lower prices, which dictated varying marketing situation is not always increased sales. Low prices many consumers seem indicator of low quality, but because they refused to purchase such goods. Besides the possibility of a marketing maneuver when making pricing decisions often limited conditions, which consisted in distribution channels, as well as rules and regulations established by current legislation. Another important reason for reducing the role of marketing pricing policy was that competition between companies while waged mainly by improving the quality of products and accompanying services. However, since the beginning of the 90 p. XX century. Commodity methods of competition in many areas is almost exhausted. And so to the fore again out price competition and with it the marketing and pricing.
Depending on the form of implementation distinguish direct and indirect marketing pricing. Direct marketing is pricing in a previous calculation of prices and their next regulation depending on changes in market conditions. Indirect marketing pricing - in the processing system of discounts, payment terms, supply, trade credit.
In terms of flexibility distinguish the marketing policy of stable and flexible prices, and by type of goods - marketing pricing policy on new products and goods that are already long on the market, it began to traditional.