E-Pricing Plan & Analysis
Autor: IMA ALWA • April 11, 2016 • Creative Writing • 1,663 Words (7 Pages) • 805 Views
4.0 E-Pricing Plan & Analysis
4.1 Current price setting of the selected product
4.1.1 Factors influencing the current price of the selected product
Before pricing strategy is set, a company must analyze the internal factors and external influences decisions. The internal factors consist of marketing objectives, marketing mix strategies, cost and organizational considerations. While external factors also is made up of market conditions and demand, competition and other environmental factors.
There are two (2) things that entrepreneurs need to take into account when putting a price on a product that is the highest price they can determine the appropriate price. The error in determining the price is likely to cause consumers not to buy because they are too expensive or risky if the price is too low.
PLS Marketing (M) SDN BHD is a company that offers quality products and reasonable prices. The price of each product according to the customer's ability. Therefore, the offered price represents a value to be paid by the user to obtain a product or service. PLS company has established a number of strategies in the lives and offer prices which are using internal and external factors.
Internal Factors
- The goal of the Company PLS Marketing (M) SDN BHD
With marketing goals set by the company then setting a price shall be adjusted to the goals set in the maximum gain and put on a par with the competitor
ii. Cost Price
Company PLS ensure the price of a product will cover the cost of production, sales and at the same time generate returns commensurate with the effort and the risks incurred. PLS Marketing recognizes that the cost of a company is a very important element in pricing strategy. PLS Marketing strives to lower costs either fixed costs or variable costs, and it's made without affecting the quality of a product because of its low cost could set a low price and will generate sales and higher profits.
External Factors
- Review of Market Prices
PLS Marketing constantly survey the market price based on the type and quality of the products and the attraction of a product.
ii. Quotations Foreign Competitors
Company takes into account the market price of off-site to see and analyze transportation costs which are mostly student users to get the product. It is calculated by the PLS Marketing as product cost price.
iii. Competition
Prices and competitors' bids can influence pricing decisions of companies. When the user wants to buy a product, they will consider these products with the products of competitors. In addition, the Company has a strategy of high prices will encourage more competitors enter the market. The Company has always in the know about the price and quality offered by competitors. In the price the product "Altec Optical Mouse" price and quality of competing products is a very important element.
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