Application of Pricing Strategies in Marketing Activities Assignment

Application of price Strategies in Marketing Activities - Assignment ExampleIn the second situation, a new company is manufacturing a dishwater detergent similar with other competitors detergent. Mainly, for such a company, their objective would be to nurse sales in a highly belligerent environment. Due to the increased cost of manufacturing the detergent, the company too intends to generate enough money to recover this cost as fast as possible. With such a case scenario, commercializeers may decide to accustom full cost pricing. With this strategy, the company intends to recover wholly cost of production, both valuable and fixed cost. Marketers only determine cost of goods and services after calculation of all the cost, hence may not mind so very much on the generated profits. Another strategy applicable for this case would be penetration pricing strategy. With strategy the company reduces prices for their products with the intention to penetrate a competitive market, wher e companies may be selling similar products for the equal markets. In the third case scenario, determining how much to sell for a new product in area where competitors are likely to sell the same product requires proper decisions by marketers. In this case, as new business in a competitive environment, the company must firstly be in a position to get valuable market share. In purchase order to have this company make sales for the new iPhones, marketers may decide to use promotional pricing. In this strategy, companies set prices lower than the normal price list temporarily in order to attract new customers.