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प्रश्न
Give two conditions under which parity pricing is desirable.
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उत्तर
- Highly Competitive Markets: In markets where many competitors offer similar or identical products, parity pricing can help a company stay competitive. By setting prices comparable to those of competitors, a company can attract price-sensitive customers and avoid losing market share to rivals who offer similar value. This strategy is particularly effective in industries where differentiation is minimal and price becomes a primary factor in consumer decision-making.
- Mature or Saturated Markets: In mature or saturated markets where products have reached peak market penetration, parity pricing can be an effective strategy. In such markets, consumer demand is stable, and growth opportunities are limited. By aligning prices with competitors, companies can maintain their customer base and ensure steady sales without the need for aggressive price reductions or extensive marketing efforts. This approach helps stabilize revenue streams and can be part of a broader strategy to maintain market position while focusing on operational efficiencies and customer retention.
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संबंधित प्रश्न
Which pricing strategy involves charging according to their competitors?
The strategy of introducing new product in existing market is classified as ______.
Introducing a product at low price and increasing the price once the brand succeeds is known as ______ pricing.
Setting a price below than that of the competition is called ______.
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
Selling price = Total cost per unit + Desired profit per unit is the formula to fix prices under which Pricing Strategy?
Skimming pricing policy is ideal for introducing a product in the FMCG sector. Justify for or against.
| Evergreen Cosmetics is planning to launch a new range of 'anti-wrinkle creams' in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion, they could easily be successful in the market. |
- Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
- Describe any two qualities that a salesman selling this product should possess.
- Explain any two tools of sales promotion that can be used here.
What are various strategies used for pricing a product?
Discuss the cons of Penetrating Pricing Policy.
