Price Strategy

INDIVIDUAL LEARNING CHAPTER VI

Under the topic of pricing strategy, there were a lot of topics that were discussed. I have
learned that pricing is an essential factor in determining the brand image. It defines the value of
the product that customers will buy and it also allows the firm to determine its profitability.

In this chapter, I have come to realize that when it comes to innovation it doesn’t focus
on the products themselves on what to change and what to improve but rather it also
innovates the price by implementing different strategies. When it comes to pricing a product,
firms also do different strategies in order to attract customers. I also learned that in pricing,
there are internal and external factors to consider. Part of the external factors is market
demand and competition while the internal factors include product cost and its objectives.
When pricing a product, what I learned from my previous marketing subject is doing a mark-up.
Here in pricing strategy, I learned another one which is the target profit where prices are set
based on its return on investment. Of the two, I was able to know that mark-up is advantageous
than the target profit because in mark-up you can play with the prices and easily set strategic
ways in order to generate a profit.

Other things I learned are the company’s objectives where there are three classifications
of different pricing. These strategies are Differential Pricing, Competitive Pricing and Product
Line Pricing where firms can use and implement in their products in order to attract more
consumers. The main thing I learned here is that the different characteristics of consumers are
addressed by specific pricing strategies. In many situations, different pricing strategies are used
based on the event. It is important to set prices according to its market in order to address
specific concerns.