The pricing strategy creation process starts with price factors thorough analysis, we need to define which factor is of key importance for our company and how we should cope with it. Setting the price goal comes next, we should choose among four goals, survival, profit, sales and quality, as different goals require different strategies and tactics. If we change the goal too often, it is likely we will not achieve great success in pricing policies. Therefore, we need to think twice price setting the company pricing goal. The third step in the process is to determine the price strategy. There are three types of price strategies, competitive products based on propulsive strategies, and it is highly recommended to combine them in a way that maximizes the positive effect on achieving the price goal.
The fourth stage is to position our products or services in the right price segment. As this is a key decision that is absolutely unique for each company. And that requires both analytical and diagnostic reasoning. I advise you to use third party comments for double check. The decision must be yours. But using an outsider or consultant or somebody who previously worked for a competitor of yours, will pay you back many times.
Having the best strategy there is not worth the paper it is written on if we do not execute it properly. And the fifth step in creating our pricing strategy is choosing the right tactics, the ones that are both highly effective If and complement our strategy in the short run, and in the long run. The next step are the price adjustments that can boost our sales as much as up to 24%. But to our customers, I say six to 8%. As usually they have improved to some extent their pricing policy by calling cars. On the price adjustments, set the end price.
This is state seven. We all know that marketing effect on customer is as strong as the weakest marketing element we implement. Therefore, the additional action we should always take into consideration when building and executing our pricing strategy is to coordinate and synergize with the other marketing mix components