The price strategy pursues mainly the goal of setting with the help of the price structuring of inducements. The price strategy is one of the four Marketingpolitiken. The other three are product politics, distribution politics and communication politics (see also marketing-mix). Generic term of the price strategy is the contracting politics (derived from contract = contract). An important decision problem is the price lower bound. The price ceiling against it is specified by the Nachfrager. It lies in principle, where the price noticed by the customer agrees with its appreciation of the product.

Cost-oriented price strategy or price lower bound

The price lower bound is based on the direct sectional cost accounting or the complete cost accounting of the enterprise, which consider for example production and material costs. It pay attention that at least the variable costs of the product, as material costs, hourly wages and energy consumption are e.g. covered. This is the short term price lower bound. In this case the amount covered is equal to zero. Become both the variable and the fixed costs (e.g. space rent, writings-off of machines, stockrooms,"…) by the price covered, the speech is from the long-term price lower bound. The long-term price lower bound marks the break even point, with which the total costs are covered and which amounts to profit zero. With the cost-oriented price strategy thus not the height of the price which can be required is specified, but it supplies the basis for the decision whether the production and/or the selling of the property are worthwhile themselves at all. The cost-oriented price strategy is a long-term price strategy.

Market-focused price strategy or optimal selling price calculation

The market-focused selling price calculation orients itself both at the prices of the rival businesses and at the behavior of the Nachfrager. It has usually the goal of the maximization of profit. Some exceptions can develop, if for example a competitor from the market is to be introduced to be pushed or a new product. In order to determine the profit-maximum price, must be considered both the type of market (monopoly, limited monopoly etc.), the behavior of the competitors analyzed and an intensive marketing research be operated. This can lead different price strategies too much depending upon market. An important aid thereby is the price elasticity of the demand. General it is to be said that (low) the price forms a "“false"” preference (preference) at the customers. If the price rises and if a competitor is more favorable, the customer changes to the more favorable enterprise. On the basis the price elasticity can be determined, in which extent customer to different price adjustments to react. If the elasticity is low, the prices can be relatively strongly varied, without the customers excessively react, i.e. with price increases customers hardly move away. In this case exists a "“genuine"” preference, which causes the customer to remain faithful despite risen price for the offerer concerned. Thus the market-focused price strategy for the short term price strategy serves.

The existence of preferences waives also the uniformity of the market price. Buyers, who prefer a certain mark, are ready, to pay a higher price than for comparable competition achievements. The price-political clearance resulting in from it (monopolyistic range) is characteristic for imperfect markets.

Special cases

As special cases the price distinction as well as price bundling are considered to the price strategy.

Price strategies

Before a product is introduced to the market, is to be decided, which price strategy for the product is to be used. One differentiates between the fixed price strategy, price competition strategy and Preisabfolgestrategie.Die selected price strategy has a high influence on the elements marketing-mixes. It is part of the price strategy of an enterprise.

Fixed price strategy

• High price strategy: The price is determined in a high price level. This can be due to quality leader shank desired or a mark strategy for example.

• Low price strategy: The price is determined in a low level. The reason for this often lies in cost leader shank desired.

Price competition strategy

The price competition strategies resemble the fixed price strategies. The difference consists of it that the price in the course of the time changes here, the order of the participants remains the same however. I.e. the price leader has the highest price etc. in the comparison still.

• Price leader: The price leader has the highest price in the relevant market.
• Price follower: Here the price is constantly adapted to that of the price leader. However is the price of the Preisfolgers somewhat below that of the price leader.
• Price fighter: The price fighter has the lowest price in the relevant market.

Price succession strategy

Here the price in the course of the time is planned changed. Two strategies are differentiated:

• Absorption strategy, with which a high initial price in the course of the time is lowered
• Penetration strategy, with which low initial price in the course of the time is increased.

Further organization means

In addition to the price strategy discounts belong. It often rather assigned as "“genuine"” price reductions, since these are to be cancelled only very with difficulty. For discounts by the customers returns are expected and them to be able to do to be quite temporally limited. Examples are quantity discounts, fidelity rebates, discount payments, Boni and achievement discounts.

See also

• Price border

Literature

• Mirko: Practical bases for active Pricing, Berlin 2005, ISBN 3-589-23510-1

• Geml, Richard/Lauer, Hermann: The small marketing encyclopedia, 3. Aufl., Duesseldorf 2004, ISBN 3-87881-183-7

• Simon, H.: Price management, 2. Aufl., Wiesbaden 1992

Related links

• Fundamentals of the price strategy (pdf, 11 S.)
• Diagram of the price distinction

Articles in category "Price strategy"

We found here 4 articles.

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