Pricing in marketing

Working in market conditions, it is important for any enterprise to implement the correct 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 sales of products, improve profitability and strengthen the company's position in the market is the most important direction of marketing activities.

Adequate pricing in marketing is a guarantee of profitability of the enterprise, as the results of the 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 only to correctly establish the price for products, but to form a strategic line, taking into account the pricing features, throughout the entire range of products.

The price strategy for a long period will become the cornerstone, on the basis of which pricing in marketing will be formed. The strategic line of price formation 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.

The first stage determines the demand for goods. 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 the goods. The indicator of costs in production determines the possibility of meeting the needs of all consumers with a profit for the organization.

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

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

At the fifth stage, price relations are determined between different goods, price lines are established, related to 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 enterprise 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, consider the necessary options 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 .