Promotion in marketingProfit-drivenProactive pricingFinancial analysispricing中文Pricing strategy examplePrice Tactic Meaning & Definition | MBA Skool
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Price is a big factor that influences consumer purchase. Therefore companies employ various pricing tactics, also known as pricing strategies, ... MBASkool Install Courses HomeCoursesConceptsSWOTAnalysisMarketingStrategyPESTLETrendsArticlesQuizzesGDTopics Concepts›MarketingandStrategy› PriceTacticMeaning&Definition PublishedbyMBASkoolTeam,LastUpdated:January08,2015 WhatisPriceTactic?Priceisabigfactorthatinfluencesconsumerpurchase.Thereforecompaniesemployvariouspricingtactics,alsoknownaspricingstrategies,whichhelpthemincreasesales,profitsandattainahighermarketshare.Themajorpricetacticsareasfollows- Discounting Discountingisaverycommonlyusedtool.OfferingdiscountonoldstockisobservedfrequentlyunderthenameofStockClearanceSale.Attimesdiscountschemesofferdiscountonlyonbulkpurchases.Festivaldiscountsarealsoofferedtoboostupsaleonfestiveoccasions.Forexample– Buy2get1free,20%offetc Oddvaluepricing Oddvaluepricingappealalottocustomers.Itmakespricelooklessfrompsychologicalpointofviewin-spiteofthefactthatpricesarenotthatlow.ForExample– Onlyfor99;Justfor999etc Lossleader Inthiscaseonecommodityissoldatexceptionallylowpricewhichisactuallylossmakingactivity.Sinceitattractsalotofcustomerstheymakepurchasesonotheritemswhichprovidetheprofit.Eg-BigBaazar Skimming Whenacompanycomesupwithanyuniqueproduct,theypriceitatahighrange.Theiraimistosellittoaselectfewratherthanthemassmarket.Itisamustthattheproductbeuniqueelsetherewillbenotakersforit.Latertheyreduceitforthemassmarkettogainmarketshare.ForExample–ThepricingofnewlatestsmartphoneswithsomenewfeaturelikefingerprintreaderorAndroidOS. Penetration Itisexactlyoppositetoskimmingpricing.Inthiscase,sellerskeepaverylowpricetogainhighmarketshareandincreasethesalesvolume.Oncetheyacquirecustomerloyaltheycanraisepricestoreapprofits. Hence,thisconcludesthedefinitionofPriceTacticalongwithitsoverview.Thisarticlehasbeenresearched&authoredbytheBusinessConceptsTeam.Ithasbeenreviewed&publishedbytheMBASkoolTeam.ThecontentonMBASkoolhasbeencreatedforeducational&academicpurposeonly.Browsethedefinitionandmeaningofmoresimilarterms.TheManagementDictionarycoversover2000businessconceptsfrom5categories.ContinueReading:ImportantDefinitions:SalesManagementMarketSegmentationBrandEquityPositioningSellingConceptDefinitionCategories:Marketing&StrategyTermsHumanResources(HR)TermsOperations&SCMTermsIT&SystemsTermsStatisticsTermsSharethisPageon: WhatisMBASkool?AboutUsMBASkoolisaKnowledgeResourceforManagementStudents,Aspirants&Professionals. BusinessCoursesMarketingOperations&SCMHumanResources Quizzes&Skills ManagementQuizzesSkillsTestsQuizzestestyourexpertiseinbusinessandSkilltestsevaluateyourmanagementtraits RelatedContent MarketingStrategy Motivation InventoryCosts SalesQuota QualityControl TrainingandDevelopment Customer CapacityManagement WorkLifeBalance MoreDefinitions AllBusinessSections Courses BusinessConcepts SWOT&BrandAnalysis MarketingStrategy&Mix PESTLEAnalysis TopBrandLists Articles GDTopics WriteforUsWrite&ContributeBusinessContentSubmitContent HomeAboutUsContactUsTermsPrivacyPolicyContributeContentCollegesMedia Followuson 2011-2021|MBASkool.com
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