Pricing is a complex and often intimidating aspect of the marketing strategy. It is extremely important to price your product to sell and to make a profit. This blog details a pricing process designed to help any company create the best pricing strategy.
Marketers use a pricing analysis to help them price their product correctly in the marketplace for profit and revenue.
Choose 1 brand of shampoo. Pretend you are the marketing manager for this brand. You have been asked to establish a new pricing strategy in the marketplace. Conduct a pricing analysis for your shampoo. Use the following format to complete this assignment:
How would you describe the product’s current pricing structure, and who is the target market?
Do you need to consider any legal or ethical constraints related to pricing?
What new pricing strategy would you use for your shampoo? Select the strategy from the following:
Value-based
Cost-based
Penetration pricing
Skimming pricing
Premium pricing
Why do you think this new pricing structure is the correct strategy for your shampoo?