StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The Pricing Process in Brand Management - Essay Example

Comments (0)
Summary
The paper "The Pricing Process in Brand Management" describes that price discounts do not reduce the brand image.  Emotional influences play an important role in purchase decisions because a willingness to buy - a significant component of demand - is dependent on more than income…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.6% of users find it useful
The Pricing Process in Brand Management
Read TextPreview

Extract of sample "The Pricing Process in Brand Management"

Download file to see previous pages Price is the ingredient of the marketing mix that has been subjected to the most intensive analysis -- particularly by economists. But as an aspect of the mix, it cannot be divorced from other ingredients. It must incorporate and reflect them. Optimal prices cannot be established, and pricing remains an art with a host of factors to be evaluated for which there are no precise measures and weights.
Price discounting is the main strategy used by managers to attract customers and popularize a product. Consumers do not respond to price discount alone; they respond to value. A lower price does not necessarily mean expanded sales. Moreover, marketing activities influence the price. For example, governmental agencies have investigated advertising as a cause of higher prices. In microeconomic theory it has received great attention; in marketing, the significance of price varies among industries, competitive situations, and products (Baker, 2006). Pricing is significant where the market impact, profit results, or both, of price variations, is great, and where firms have considerable discretion over the prices charged. In many instances, pricing decisions are severely constrained and are sometimes relatively unimportant. Large purchasers of industrial goods, for instance, may specify prices at which they will buy, determine product specifications, and send specifications to suppliers for competitive bids (Philips, 2005). For other products price may not be a relevant factor. In some technical areas where products require much research and development and involve much uncertainty, a cost-plus scheme may be used. In other situations, sellers may be almost completely free to set prices, while in still others, they may only be able to decide whether or not to sell at a price. In an economy of scarcity, price is accorded more attention than any other marketing factor. In an economy of abundance, non-price factors assume increasing marketing importance and products are differentiated on other bases than price (Marn et al 2004).
Price Discounts and Marketing Objectives
The main considerations for pricing discounts decisions involve market objectives and organizational considerations, costs and marketing mix strategies. Also, it is important to take into account market demands and psychographic characteristics of the target audience, competitors' prices and market position of the company. Pricing is a sensitive and complex decision area affecting sales, costs, and profits for both industrial and consumer goods. For consumers, price reductions and increases have symbolic meanings. A customer may associate a price reduction with a reduction in quality, the anticipation of new models, or even lower prices or poor market acceptance (Philips, 2005). Higher prices may indicate better quality, a good image, and good value. Customer perceptions of price are important. Whereas pricing is usually perceived as a short-run action, its implications can be long-run, even to the point of shaping industry structures. Markets that may be viewed as systems of information on cost and demand determine the appropriateness of prices (Marn et al 2004). They contain signals that businessmen must decode. But market information is ambiguous, fragmentary, and imperfect; it contains much uncertainty and is interpreted differently by various executives. ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Pricing Process in Brand Management

Brand management, Managing price discounting and its possible impact on Brand equity

8 Pages(2000 words)Assignment

Brand Equity

4 Pages(1000 words)Essay

CHANEL - Brand Equity, Brand Positioning, Brand strategy

5 Pages(1250 words)Essay

Zara Brand Equity and Brand Positioning

6 Pages(1500 words)Essay

Brand Equity

2 Pages(500 words)Essay

Jaguar brand equity charter

1 Pages(250 words)Assignment

Measuring and Managing Brand Equity

6 Pages(1500 words)Essay

Brand equity for Sandro

2 Pages(500 words)Speech or Presentation

Implementing Schedule of Time Management

6 Pages(1500 words)Coursework

Change Management

10 Pages(2500 words)Coursework

India Brand Equity Foundation

13 Pages(3250 words)Assignment

The Nature of God and Its Relation to Mission

8 Pages(2000 words)Case Study

Measuring Brand Equity

63 Pages(15750 words)Research Proposal

Diversity Management in Organisations

6 Pages(1500 words)Case Study

The Effects of Media to Its Audience

7 Pages(1750 words)Case Study

Structure of the Educational System in Morocco and Its Capacity for Addressing the Needs of the Hospitality Industry

15 Pages(3750 words)Research Proposal

Immigration and Its Impact on the United Kingdom

23 Pages(5750 words)Assignment

Senegal and Its Implications on Tourism

7 Pages(1750 words)Assignment

People, Organisations and Management

8 Pages(2000 words)Assignment

Self Assessment: Conflict Management Style

7 Pages(1750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Pricing Process in Brand Management for FREE!

Contact Us