GROUP 2

Cecilio, Irylle Dayne

Esguerra, Realyn
Gutierrez, Lorraine Jane
Maaño, Alfeonna Keith

Maderal, Aliya Alexine

Secuando, Jesiree Jane

1. What is Financial Strategy?

- It is a major way or path where you can try to achieve the success of your money. It is
relevant for a person to have a financial strategy to manage their money and to have a
clear plan for the money. It has five main types: retirement, investment, emergency,
debt, and financial security strategies. Retirement strategy has an impact because it is
a plan for how you will save up and survive once you retire. Investment strategy is
one of the keys to having money in your hands because it helps you grow and have
more money through those different investments. Debt strategy is the money where
the responsibilities are a part of your money. That's why it is better to know about
loans and cards to save more. Emergency strategy is one of the most important
because we don't know the future or what will happen next. That's why it's better to
have an advance thought about handling problems and bills. A financial security
strategy is also important because it is a long-term plan like life and health insurance
for your family that might help the whole family.

2. Identify the different types of Pricing Strategies

- Value-Based Pricing: It sets the price for the product based on what the customers
believe it's worth and what they're willing to pay.
- Bundle Pricing: The company offers a deal where you can buy a group of products
together for a lower cost than buying each one separately.
- Price Skimming: The business initially charges a high price for its new product and
gradually reduces it as the product becomes more established in the market.
- Dynamic Pricing: Adjusting prices based on market demand, competitor activities, or
other external factors.
- Competitive Pricing: Setting prices in line with or slightly below competitors' prices.
- Freemium Pricing: Offering a basic product for free and charging for premium
features or upgrades.
 - Loss Leader Pricing: When a business offers a product at a loss or with little profit in
order to attract people to their shop or website, the idea is that these customers would
purchase other, more profitable things.
- Price Discrimination: Companies offer various rates to different client groups
depending on criteria such as income, age, or geography. It is frequently used in areas
like as tourism and entertainment.
- High-Low Pricing: Frequently reducing things but restoring them to their original
higher price during sales seasons to provide the impression of a good deal.
- Optional Product Pricing - It aims to sell products at a lower price in order to attract
consumers' demand. But also with the sense of the consumer's preference, allowing
them to have additional features, add-ons, and upgrades.
- Product Line Pricing - It offers a range of product with different price standpoint
presenting different set of attributes and benefits. Pricing products for to cater the
consumers' budget.
- Economy Pricing - offering a lower price for the products in accordance to the low
cost of production. Making the costumers feel that they have won a great deal upon
purchasing.
- Penetration Pricing - It involves setting a low initial price for a product or service to
quickly gain market share.
- Subscription Pricing – It involves charging customers a regular fee monthly or
annually for access to a product or service.
- Cost-Plus Pricing – It involves adding a markup to the cost of producing or acquiring
a product to determine the selling price.

3. What strategy are you going to use in your business?

- In our business, we will use dynamic and economy pricing. Using a dynamic pricing
strategy in our business can help us adapt to changing market conditions, ensuring
that our prices remain competitive and reflective of real time demand. It also allows
us to maximize profits by adjusting prices based on factors like customers behavior,
inventory levels, and competitor pricing, ultimately leading to increased revenue and
improved profitability. Additionally, dynamic pricing provides flexibility to respond
quickly to market variation, giving us an edge in dynamic and competitive industries.
And by using an economy pricing strategy in our business is also beneficial because it
ensures that prices cover production costs while still remaining attractive to
customers. This strategy helps us to maintain profitability and sustainability in the
long run. By carefully considering factors like fixed costs, variable costs, and desired
profit.