Pricing in marketing

Working in a market economy, for anyit is important to implement the right pricing in marketing. Pricing for products is a fairly complex process, which depends on many factors. The choice of the direction of pricing, approaches to the formation of prices to ensure the sales of products, improve profitability and strengthen the position of the enterprise in the market is the most important direction of marketing activities.

Adequate pricing in marketing ispledge of profitability of the enterprise, as the results of decisions on pricing can be decisive, both in terms of profit from sales and in terms of incurred losses.

When developing a pricing strategy, it is important not toonly correctly set the price for products, but to form a strategic line, taking into account the pricing features, throughout the product range.

The price strategy for a long period will becomethe cornerstone on the basis of which pricing will be formed in marketing. The strategic price formation line will allow the organization to determine the expected volume of profit, the market share in the future, and therefore - will give a certain time and financial reserve to influence the situation on the market.

In the literature on marketing, six stages are distinguished, on the basis of which pricing in marketing is formed.

At the first stage, the demand for goods is determined. Demand indicators are set for the price of goods in a particular segment. Potential opportunities, economic and psychological, are determined by purchasing the goods by the buyer at the offered price. At the second stage the enterprise chooses the most favorable price for itself, which will ensure the maximum level of marginal profit. At this stage, the most favorable prices are set for the manufacturing enterprise. Costs are calculated using the direct attribution of product costs to determine the price of goods. The indicator of costs in production determines the ability to meet the needs of all consumers with a profit for the organization.

At the third stage, the price is determinedgoods in comparison with the goods of competitors, and the corresponding adjustment is made on the quality parameters and other components. If necessary, it is necessary to adjust the prices when responding to competitors.

At the fourth stage, the price threshold is determined, andalso possible conditions for price reduction. But the main key to lowering prices is reducing production costs. It is reasonable to reduce the price of the goods with a small load of production capacity, the threat of reducing sales in aggressive competition, filling warehouses, and so on.

In the fifth stage, the price relations betweenvarious goods, price lines are established, associated with the sale of goods in the range where the price of the goods reflects the level of quality and so on. Also, its structure is formed.

At the sixth stage, tactics of prices are being developed. It includes:

- a uniform price policy for various goods;

- Tactics of a loss-making leader, in which the company sells some of its products at a reduced price to attract consumers to the entire range of products that are sold at regular prices;

- The organization of sales.

Also at this stage, the necessaryoptions for discounts / surcharges to the price, depending on the volume of sales. As you can see, all the stages of the pricing process are very important and play a certain role in the formation of the company's profit.