What Are the Top Product Mix Pricing Strategies in the Market?
Product Mix Pricing Assignment Help is the process used by companies when it comes to deciding the price range of their products. Companies which have a diverse product line use different strategies to determine their price. This is done while keeping in mind the following factors:
- Market
The market in which the company is selling its products determines the price of the products sold. The market is the central meeting point of all factors like suppliers, customers, competitors among others.
- Customers
The targeted sections of customers play a fundamental role in determining the price range of the products. The companies cater to the needs of their customers with respect to the price, quality and quantity of the products.
There are a lot of strategies adopted when it comes to Product Mix Pricing Homework Help. They have been enumerated as follows:
- Product Line Pricing
This is a strategy where the companies price their products in varying ranges. This is done to target a larger section of customers. This ensures that the products can be purchased by customers belonging to different classes. Thus the company is able to reach out and penetrate the market from all angles. Mostly FMCG companies use this strategy as they have the most diversified product lines.
- Additional Feature Pricing
Additional Feature Pricing or Optional Feature Pricing is done to products which have add on features. This is done by companies for products which are priced based on their additional features. The products have a base price which may vary as per the optional feature that the customer desires to use. This is commonly employed by automobile industries when it comes to cars and motorcycles.
- Captive Product Pricing
Captive Product Pricing is the variation of Optional Feature Pricing. This is because the companies charge a price on the additional or complementary equipment of the product. The main product is generally available at a lower cost while the ancillary product is charged a higher rate. The products are such that they cannot be used without the other. The best example of such a pricing strategy is seen in companies which manufacture printers and ink cartridges.
- Product Bundling Price
This Product Mix Pricing Homework Help strategy is used to sell products in a bundle. This is done to sell larger volumes of products. Although profitability in such strategies are low, they ensure stock and cash turnover at a faster rate. This is mostly used by new companies and start ups which want to introduce their products in the market without the added cost of promotional strategies. For more details visit myhomeworkhelp.com.
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