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Determine Pricing Strategy to Meet Organizational Goals

In: Business and Management

Submitted By angelaroth
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Learning Team A Reflection of Week Three Objectives Patrece James, Angela Roth, Michele King, Domingo Cuison University of Phoenix ECO/561 Professor David Flesh April 16, 2012

Week 3 learning objectives are 1) Determine pricing strategy to meet organizational goals;
2) Determine ways to create non-price barriers to entry based on market structure; 3) Determine ways to increase product differentiation based on market structure; 4) Determine ways to reduce costs for an organization. Pricing Strategy. Pricing is a major element of marketing and can help determine how successful your product or service will be to meet organizational goals. Pricing affects product positioning as well as product features, promotion and sales strategies. There are a number of different pricing strategies organizations have to consider that should reflect its overall sales strategy and the current state of the market. The pricing strategies that organizations can use are: 1) Developing a price; 2) Pricing objectives; 3) Pricing method; 4) New Product pricing; and 5) Price discounts. In developing a price, promotional tactics and distribution should be taken into account, as well as how demand will alter at different prices. In an article in Bloomberg Businessweek, it states that 90 percent of companies simply mark up costs and do not take into account the value the product may offer compared to rival products. It argues that price should be set instead based on overall sales strategy and objectives. A common strategy to...

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