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प्रश्न
Parity pricing is not relevant under the present marketing conditions. Justify either for or against by giving two reasons.
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उत्तर
Against:
- Parity pricing allows companies to remain competitive by aligning their prices with their competitors. In markets where products are similar, this strategy helps businesses attract price-sensitive customers and avoid being undercut by competitors.
- By using parity pricing, companies can simplify their pricing strategy. They can focus on other aspects of their marketing mix, such as product differentiation and customer service while ensuring their prices are competitive.
For:
- Parity pricing can lead to a lack of differentiation between competitors. In today's market, consumers often look for unique value propositions, and simply matching competitors' prices may not be enough to attract and retain customers. Businesses need to innovate and offer distinct benefits to stand out.
- In highly competitive markets, parity pricing can lead to price wars, which can erode profit margins. Companies may be forced to lower prices to match competitors, leading to reduced profitability. A more strategic pricing approach, such as value-based pricing, can help maintain healthy profit margins while offering perceived value to customers.
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संबंधित प्रश्न
Which pricing strategy involves charging according to their competitors?
Explain the below mentioned pricing strategy:
Skimming pricing strategy
The strategy of introducing new product in existing market is classified as ______.
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
Factors which do not influence price determination is ______.
Give two conditions under which parity pricing is desirable.
Skimming pricing policy is ideal for introducing a product in the FMCG sector. Justify for or against.
In a competitive market, parity pricing is the appropriate strategy. Justify either 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 pricing strategy will be used to launch shampoo?
