Pricing of Goods and Services - Coursework Example

The difference between pricing of goods and services is also highlighted and the emphasis is on understanding consumer needs, market trends, the quality given and expected, competitor pricing methods used, geographical or local demands, and the resources available that would determine the price. Recommendations are provided for a more successful approach to marketing and for superior pricing strategies.

 Introduction

 This project would deal with the efficacy of pricing strategies and how these strategies are made. Pricing strategies are important for companies as they can help companies to successfully use market trends and expectations and set their prices to increase sales and reputation of their products and services. The marketing and business strategies of companies may not always follow strict pricing rules and theories and this may lead to incorrect pricing of products and services which can result in losses. To avoid this situation, companies must realize that their corporate focus could be largely based on pricing, and drawing up a strategy for the pricing of goods and services would go a long way in improving company performance. The study here compares two different approaches to pricing drawing out similarities and differences and suggests the different pricing methods that could be most appropriate for different marketing situations. By throwing some light on different pricing methods, the thesis shows the pricing strategies that could be used by companies whether they are simply entering a market or trying to have an edge over competitors. This project differentiates between cost-based, competitor based and value-based pricing and thus could be a resource for companies that seek to understand the importance of pricing strategies for marketing and selling of their products and services. This project seeks to provide comprehensive information on the pricing methods available and differentiates the pricing strategies that could be used in different marketing situations.

In addition, it is focused on how pricing strategies would be applicable for different management situations such as retail, services sector, land development or value-based real estate pricing, internet services, healthcare, financing, and general business. Here, I will provide analysis and delineate the scope of future work by providing research evidence and suggestions for future development in the area of pricing and the strategies used for pricing services.