Pricing strategies

The techniques, theories, and commonly accepted strategies regarding pricing of goods. The relation between pricing strategies and outcomes in the market such as profitability maximisation, deterrence of newcomers, or increase of market share.

pricing strategy
pricing plans
price strategies
pricing tactics

knowledge

cross-sector

Pricing strategies is an essential knowledge of the following occupations:

Online community manager: Online community managers provide and maintain an interactive environment facilitated by applications such as social media, forums and wikis. They maintain the relations between different digital communities.
Marketeer: Marketing consultants advise companies in the development of marketing strategies for specific purposes. They can advise and develop strategies for the entry of a brand in the market, for the re-launch of a product, for the introduction of a new product, or for the positioning of a commercial image. They perform previous studies of the position of the company and perception of customers in order to define the marketing approach.
Marketing manager: Marketing managers carry out the implementation of efforts related to the marketing operations in a company. They develop marketing strategies and plans by detailing cost and resources needed. They analyse the profitability of these plans, develop pricing strategies, and strive to raise awareness on products and companies among targeted customers.
Sales manager: Sales managers develop sales and targeting strategies for a company. They manage sales teams, allocate sales resources based on the plans, prioritise and follow up on critical leads, develop sales pitches and adjust them over time, and maintain a sales platform to track all leads and sales.
Promotion manager: Promotion managers plan and implement the implementation of promotional programs in the point-of-sale of products. They coordinate all efforts from personnel, below-the-line (BTL) advertising material, and conventional advertising efforts in order to raise awareness of a specific promotion.
Category manager: Category managers define the sales programme for specific product groups. They research market demands and newly supplied products.

Pricing strategies is optional for these occupations. This means knowing this knowledge may be an asset for career advancement if you are in one of these occupations.

Commercial director: Commercial directors are responsible for the income generation for the commercial sector of their company. They manage several commercial tasks such as setting targets, overseeing the development of products, planning and developing selling efforts, managing sales agents, and determining product prices.
Purchasing manager: Purchasing managers are in charge of buying goods, equipment and services for their company, and try to ensure the most competitive prices. They are also responsible for negotiating contracts, reviewing the quality of products and analyzing suppliers , and the use and resale of goods and services.
Advertising manager: Advertising managers perform the implementation of the advertising initiatives planned in the strategic marketing plan. They organise and prepare the resources needed to launch advertising campaigns and operations in advertising agencies. They prepare and align the communication channels, negotiate contracts, and ensure that operations adhere to budgets.
Business valuer: Business valuers provide valuation assessements of business entities, stock and other securities and intangible assets, in order to assist their clients in strategic decision-making procedures such as mergers and acquisitions, litigation cases, bankruptcy, taxation compliance and general restructuring of the companies.
Public relations manager: Public relations managers strive to convey and maintain a desired image or reputation of a company, individual, governmental institution, or organisation in general to the public and stakeholders at large. They use all sorts of media and events to promote the positive image of products, humanitarian causes or organisations. They attempt to ensure that all public communications portray clients the way they want to be perceived.
Product manager: Product development managers are responsible for managing the lifecycle of a product. They research and develop new products in addition to managing existing ones through market research and strategic planning. Product managers perform marketing and planning activities to increase profits.
Supply chain manager: Supply chain managers plan, manage and coordinate all activities related to the sourcing and procurement of supplies needed to run manufacturing operations from the acquisition of raw materials to the distribution of finished products. The supplies can be raw materials or finished products, and it can be for internal or external use. Moreover, they plan and commission all the activities needed to be performed in manufacturing plants and adjust operations to changing levels of demand for a company’s products.

References

1. Pricing strategies – ESCO