Pricing And Globalization Strategies
Pricing And Globalization Strategies
Pricing and Globalization Strategies" Please respond to the following: Using the Internet or Strayer databases, analyze pricing techniques for established products and services. Next, select and explain the pricing strategy you would use for a business. Within your response, you should also identify three (3) objectives this strategy seeks to achieve. Discuss three (3) strategies you could use for the development of a successful website to support a new business. Be specific in stating how these strategies will help the company achieve its goals.
Paper For Above instruction
Effective pricing techniques for established products and services are essential for maintaining competitiveness and profitability in a dynamic market environment. According to Kotler and Keller (2016), common pricing strategies include cost-based pricing, value-based pricing, and competition-based pricing. Cost-based pricing involves calculating the total cost to produce a product and adding a markup to ensure profit, while value-based pricing focuses on the perceived value to the customer rather than the cost. Competition-based pricing entails setting prices relative to competitors’ prices to position the product appropriately in the marketplace. For example, luxury brands often employ premium pricing to emphasize exclusivity and quality, while discount retailers utilize penetration pricing strategies to attract price-sensitive consumers. These techniques enable firms to adjust their pricing dynamically depending on market conditions, consumer demand, and competitive actions, thereby optimizing sales and profitability.
For a new business, I would adopt a value-based pricing strategy. This approach focuses on pricing products based on the perceived value to customers, which is particularly effective when entering innovative or niche markets. The primary objectives of this strategy include maximizing profit margins by capturing consumer surplus, establishing a premium brand image, and fostering customer loyalty through perceived superior value. To support this strategy, three key website development strategies should be employed. First, implementing user-friendly and engaging web design ensures an optimal customer experience, facilitating easier navigation and faster purchasing decisions. Second, leveraging search engine optimization (SEO) enhances online visibility, driving organic traffic and expanding the customer base. Third, integrating customer review features and interactive content encourages user engagement and builds trust, thereby increasing conversion rates. These strategies collectively help the company differentiate itself in the marketplace, attract targeted consumers, and achieve sustainable growth.
References
Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.