High price strategy examples of companies. Marketing: pricing strategies. Preferential pricing strategy

In marketing, it is customary to distinguish the following concepts related to the process of determining prices: pricing policy, strategy And tactics.

Pricing policy - These are the intentions of the organization and the principles in the field of pricing that it intends to adhere to when setting prices for goods and services. Pricing policy is the basis for developing a pricing strategy.

Pricing strategy – this is a set of long-term agreed provisions that determine the formation of the market price for a product in the interests of ensuring sales. As a rule, according to the chosen strategy, the most important decisions are made that entail long-term consequences for the development of the organization.

Flail tactics - This is a system of specific practical measures to manage prices for goods and services of a company in the short term. Tactical techniques involve actual manipulation of prices to achieve set goals, as well as influencing the buyer’s psychology, regardless of significant price changes. Tactical techniques include establishing a premium (increasing the price of a product) and a discount (reducing the price of a product). The use of discounts is quite widespread.

Pricing tactics have a significant impact on profits. A 1992 report by McKinsey, which analyzed the performance of 2,400 firms, shows how various decisions affect business profitability. On average, a 1% reduction in fixed costs increases business profitability by 2.3%, a 1% increase in sales volume increases profitability by 3.3%, a 1% reduction in variable costs leads to a 7.8% increase in profit, and an increase in prices 1% increase can increase profits by 11%.

Contents of the most famous pricing strategies

The main objectives of the pricing strategy in a market economy are: obtaining maximum profit with the planned sales volume; maximizing revenue prices, product sales volumes or competitiveness; ensuring a given level of profitability.

Pricing strategies include pricing strategies And price management strategies.

Pricing strategy – this is a set of measures that allows you to determine, from a marketing perspective, the price level and maximum prices for individual groups of goods.

Price management strategy is a set of measures to maintain price compliance with the variety and characteristics of demand.

Low price strategy. Other commonly used names are: market penetration strategy, strategy for introducing a product to the market (eng. market penetration pricing), market breakthrough strategy. This strategy involves initially selling products that do not have patent protection at low prices to stimulate demand. This allows you to squeeze out competing products from the market and gain a significant share of it. After such a promotion, prices rise. This strategy is effective in markets with high elasticity of demand, when the buyer responds to low level prices by a sharp increase in the volume of purchases. It is unacceptable for markets with low elasticity of demand. A significant increase in price causes a negative consumer reaction. Much more often, a variation of such a strategy is used, in which low prices do not increase in the future and even decrease, and the growth of total profits is ensured by a large sales volume and a reduction in unit costs for production and sales of a unit of goods as a result of economies of scale. Thus, the price initially set at a low level turns out to be economically justified.

Extremely Low Price Strategy loss-leader pricing) is to set a price lower than most competitors in the market. This situation continues long time. As an example, we can refer to the activities of the French retail chain Auchan, owned by the Dubrule family, which is already known in Russia. The company attracts its customers by strictly following the principle of selling popular products at the lowest possible price. Products that are not cheap do not make it onto the shelves of the Auchan chain. Despite the modest interior and rather limited selection, as well as the distance from the city center, the chain’s stores attract those customers who are ready to travel to the outskirts to save money. The company's clear positioning allows it to occupy its fairly large niche in the market.

High chain strategy or another, more well-known name - skimming strategy (from English market-skimming pricing), involves selling goods initially at high prices, significantly above cost, and then gradually reducing them. At the product introduction stage, an expensive version is first released, and then simpler and cheaper models are released to attract more and more new market segments. This ensures a quick return on investment in the development and promotion of the product. This strategy is most often used for new, high-quality products protected by patents that have a number of attractive, distinctive features for consumers willing to pay a premium price to purchase them. When reducing the price, one should take into account the reaction of consumers, who may perceive this fact as evidence of a decrease in the quality of the product or the possibility of a further, even greater price reduction, the imminent replacement of this product with a newer model, or low demand for the product. Currently, the high price strategy is widely used in practice. Let's say this is how Intel sets prices for its new processors. The calculation here is based on the fact that there will always be a certain percentage of consumers who will willingly buy an expensive new product.

Single Price Strategy provides for the establishment of the same price for all consumers, no matter where they are located. Its advantage is that it is simple and easy to implement, makes catalog sales and mail order sales attractive, and strengthens consumer confidence. However, in most cases, its effect is limited by time, product and geographical boundaries.

Stable price strategy, or strategy of standard prices, constant prices, long-term prices (eng. Long-established pricing) involves the sale of goods at constant prices over a long period. Goods are sold to any buyer at the same price for quite a long time, regardless of the place of sale. Most often used for mass sales of homogeneous goods in markets where there are a large number of competitors.

The cost of a bottle of Coca-Cola in the American market has been stable for 60 years and amounted to 5 cents. When the president of the company The Coca-Cola Company Robert Woodruff decided to raise prices; he recommended to his friend, then US President Dwight Eisenhower, to introduce a coin in denomination of 7.5 cents and the size of a 5-cent coin - the famous “nickel”. Woodruff was denied. Replacing The Coca-Cola Company's entire fleet of vending machines, which have relied on nickels for decades, was more expensive than modifications monetary system USA.

Differential pricing strategy based on the heterogeneity of buyers and the ability to sell them goods at different prices. It provides for the establishment of a certain scale of possible discounts and surcharges to the average price level for various markets, their segments and buyers, which takes into account different types buyers, features of the location of markets and their characteristics, time of purchase, product options and their modifications. The success of differentiated pricing depends on the accuracy and quality of market segmentation.

This strategy requires compliance with a number of conditions, in particular, covering additional costs of its implementation with the amount of additional revenues as a result of its implementation, the presence of clear boundaries of market segments, and the absence of the possibility of resale of goods from segments with low prices to segments with high prices.

Varieties of differentiated pricing strategy are preferential strategy And discriminatory pricing strategy.

Preferential pricing strategy. For buyers in whom the manufacturer or seller has a certain interest, preferential prices are established. Along with sales promotion for regular customers, price competition measures are also used.

Discriminatory pricing strategy. Under this strategy, prices are set at the highest level for a given product. It applies to buyers who are extremely interested in purchasing a given product, as well as to unwanted buyers. The difference in prices does not take into account differences in costs. The strategy is carried out in various forms, taking into account the time, place of sale, product variant, and whether customers belong to a certain group. Its implementation is also possible if the government implements a general discriminatory policy towards the country in which the buyer operates: establishing high import or export duties, establishing mandatory rule using the services of a local intermediary, etc.

Dual pricing strategy two-part pricing) implies the simultaneous operation of two tariffs for related services or goods. For example, at Disneyland in the United States, visitor fees include a fairly significant entrance fee and a small fee for using any attraction. Telephone companies often set both a fixed monthly subscription fee for their services and per-minute calls. IN recent years The dual pricing strategy has become widespread, and the number of organizations successfully using it is growing every year. World experience shows that the practice of double tariffs allows you to get more income than by setting a single price for a product or service, but it should be borne in mind that to use this strategy you must have significant authority in the market.

Flexible pricing strategy, or elastic price strategy flexible pricing), provides for rapid changes in the level of sales prices depending on the balance of supply and demand in the market. Used when concluding individual contracts for each batch of heterogeneous goods.

Price leader strategy, other names – strategy of following the prices of the leader in the market or industry, strategy of following (eng. follow pricing). When applying it, the price of a product is set in accordance with the price offered by the main and stable competitor in the market. This strategy is widely used by those organizations that do not have the opportunity to develop their own pricing strategy. Its significant drawback is that the strategic goals of the leader and those who follow him most often do not coincide, so this strategy cannot in most cases be optimal for followers and is rather forced for them than the best.

Competitive pricing strategy implies a certain action or inaction in response to competitors reducing the price of a product.

It includes two options. The first - reducing the price to the level of competitors or even lower in order to survive the competition, and maybe even increase your market share, is used for those markets in which it is extremely dangerous to lose a share. The second is maintaining the price at the same level, despite the fact that competitors have reduced prices. This strategy is carried out with the goal of maintaining the profit margin at the same level, but is fraught with a gradual reduction in its presence in the market. It is used in markets with low elasticity of demand, where there is no acute reaction from buyers to maintaining a high price level and there is confidence that it is possible to restore lost positions in the market due to the high prestige of the product.

Strategy to Counter Price Transparency provides for the development and implementation of measures that can make it difficult for buyers to compare prices of competing companies. For example, Sony Corporation changes model numbers when shipping to different retailers. This is done to ensure that consumers do not feel confident that they are comparing prices on the same models. Manufacturers committed to this pricing strategy believe that its use reduces price transparency and reduces the negative impact of competition. World practice shows that the less influence of a given manufacturer on the market, the less it can interfere with the process of price comparison, and therefore, the simpler the pricing system it should use.

A group of strategies is often identified based on psychological aspects consumer price perception. Among them are usually noted prestigious pricing strategy And unrounded price strategy.

Prestige pricing strategy prestige pricing) involves the sale of goods and services at high prices. It is designed for buyers who close attention on trademark and sensitive to the prestige factor. Such consumers do not purchase goods or services at prices that they consider too low for themselves.

Unrounded price strategy is to set prices below round numbers. Based on Western experience, it is believed that buyers will perceive such prices as the seller’s desire to set them at a minimum level.

Assortment pricing strategies are used when a set of similar, related or interchangeable goods is promoted to the market. Among them are the establishment of prices within the range of goods, for complementary goods, for mandatory accessories, for by-products of production, for a set of goods.

Strategy for setting prices within a product range product line pricing) involves determining the price interval between goods included in the assortment group. This takes into account the difference in the cost of goods, differences in the perception of their properties by consumers, as well as the peculiarities of prices for competing goods. Buyers, as a rule, purchase a more advanced product if the price gap between neighboring models in the product range is small, and a less perfect product if it is large.

Strategy for setting prices for complementary goods optional product pricing). Complementary products are those products that are or can be sold together with the main products and, when used together, make the latter more convenient or prestigious. The main difficulty in implementing this strategy is the correct formation of the basic delivery package, which in itself must be quite competitive in the market. The price of complementary goods should not exceed the consumer's assessment of the value of the benefits associated with it.

Pricing strategy for must-have accessories captive-product pricing). Under this strategy, must-have accessories are often priced well above cost and essential items are priced below. The cost of the former may be relatively low, but they are purchased frequently, which ensures high profits from their production and sale.

There are other examples of this strategy being implemented. Hewlett-Packard (IIP) has introduced two types of cartridges to the market - Standard and Value. One is for those who type little, the other for those who type a lot. In the first case, the cartridge costs less, but the page costs more; in the second case, it’s the other way around.

Strategy for setting prices for production by-products by-product pricing). In this case, by-products mean products made from waste from the main production. IN modern society high security requirements environment Therefore, the disposal of waste from the main production can have a significant impact on the price of the product.

In accordance with this concept, an effort should be made to find a market for such by-products at a price that can cover the costs of their storage, processing and delivery. In a particular case, when disposal costs may be high, a price significantly lower than this level can be considered acceptable, since the alternative to selling and receiving a certain amount of revenue is disposal costs. In some cases, own production of goods based on waste from the main production can bring significant profits and will significantly reduce the price of the main product.

An interesting example of rethinking the strategy of setting prices for production by-products is the history of the activities of a well-known chocolate empire in the world. Mars, famous for Milky Way, Mars, M&M's.

The owner of the company, Forrest Mars, noticed that the post-war boom not only sharply increased the number of children, but also pets that were bought for children or as compensation for loneliness and childlessness. Human food was used to feed them. Mars calculated that waste from the main production can be bought from meat processing plants for next to nothing, and advertising based on people’s love for our little brothers will help promote the idea of the need for special food for animals.

By the mid-50s. XX century He established the production and marketing of special food for animals in Europe, mainly in the Netherlands, and in 1967 in Central and South America and further around the world. Raw materials for the products were purchased from specialized enterprises.

Strategy for setting prices for a set of goods product-bundle pricing) involves the formation of a set of goods related by some principle and its sale at a price lower than the total price of the goods included in it. The strategy becomes effective if this price difference is large enough.

Geographic Pricing Strategies make it possible to take into account in the price the different position of the buyer relative to the place of production or shipment of the purchased product. Among them, in practice the most often used single pricing strategy with delivery costs included, free on board pricing strategy, zonal pricing strategy, basis point pricing strategy, delivery pricing strategy.

Strategy for setting a single price with delivery costs included. Uniform delivered pricing) implies the use of the same price, regardless of the location of the buyer. The price includes average transportation costs. The advantage of using this strategy is the simplification of settlements with customers and the ability to advertise the price regardless of the location of the customers. Its disadvantage is the deterioration of the competitive capabilities of the product in the market, where there are products of the same quality, but the price of which includes lower transportation costs.

Free on board pricing strategy FOB-origin pricing). The English abbreviation FOB is derived from the phrase free on board, which means that from the moment the goods are loaded on board the carrier, the seller’s obligations end and each buyer pays his own transportation costs. This strategy worsens the conditions for successful competition in geographically distant markets.

Strategy for setting zonal prices zone pricing). Conceptually, this strategy is intermediate between the two described. According to it, two or more zones are geographically allocated, in which buyers from the same zone are served at the same price, while a regularity is implemented - the further the zone is from the seller, the higher the price. The main disadvantage of this strategy is manifested in the seller's relationships with buyers located close to the border between the zones, but on opposite sides of it. For them there is little difference in geographical location leads to a large difference in price.

Basis point pricing strategy basing-point pricing). According to this strategy, a geographical location is selected, in relation to which the transportation costs included in the price for delivering the goods to the location of the buyers are determined. In this case, the actual place of shipment of the goods is not directly taken into account in the price. Thus, if the basis point is located outside the place of production or storage of the goods, the price for buyers near the place of production may increase, and for buyers far from the place of production it may decrease. When working over large areas, it is common to try to select several base points to ensure that competitive prices exist over as large an area as possible.

Strategy for setting prices with delivery Freight-absorption pricing) implies that the seller partially or fully assumes delivery costs and does not directly include them in the price. This strategy is used when there is confidence that profits from increased sales will cover additional transportation costs.

In practice, pricing strategies are used in a combination of different types, depending on the specific market situation and general marketing strategic objectives. In real business life, various pricing strategies are simultaneously used, which must change in accordance with the real situation in a particular market and the goals achieved by the organization.

The essence of pricing strategy

Pricing strategies are part marketing strategy company and the overall development strategy of the company.

Note 1

A pricing strategy is a set of methods that are used to set market prices for goods and services.

Pricing strategy is the choice of possible changes in the price of a product in market conditions, which allows you to achieve the company’s business goals.

A pricing strategy is a model of company behavior planned for a long-term period, the main goal of which is the effective sale of goods/services.

The pricing strategy serves as a condition for determining the positioning of products in the market, and it is also a function that is formed under the influence of several factors:

product novelty;
life cycle phases;
combination of price and quality;
competitiveness of the product;
market structure and company position in the market.

Each factor should be studied taking into account the organization's reputation, distribution and promotion system.

Note 2

The choice of pricing strategy is significantly influenced by the stage of the product life cycle. At each stage of the life cycle, their own pricing strategies are developed and implemented.

During the implementation phase, 4 strategies are applied within the company's pricing policy. At the growth stage, with increased competition, enterprises organize their own sales channels and attract independent sales agents. There is a process of rapid sales due to the improvement and modernization of products, entry into new market niches, and increased advertising. This leads to repeat purchases. In this case, enterprises usually set high prices to skim the cream off the market.

At the maturity stage, sales volume stabilizes and a class of regular customers appears. When saturated, sales become completely sustainable and are supported by repeat purchases. Particular attention is paid to the search for new segments and opportunities for new use of products by regular consumers.

During the recession phase, attempts are made to increase sales. In this case, the goods undergo changes, the quality improves, and the properties of the goods are modified. A possible price reduction will help bring back old customers and attract new ones.

Types of Pricing Strategies

Pricing strategies are divided into three groups:

cost-oriented;
demand-oriented;
with a focus on competition (closed tenders).

In the first case, the strategy is based on the principle of break-even production (income is equal to total costs).

$Ts K = Hypost + Iper K$, where:

$T$ is the price;

$K$ is the quantity of goods;

$Ipost$ – fixed costs;

$Iper$ - variable costs.

The second group of strategies involves the quantitative measurement of price sensitivity, which is carried out using indicators: elasticity of demand and “perceived value”.

Within the third group, it is possible to use three mutually exclusive strategies:

adaptation to market price;
consistent reduction of prices;
consistent overpricing.

There are also other types of pricing strategies:

high price or skimming strategy;
average or neutral price strategy;
low price or price breakout strategy;
target price strategy;
preferential pricing strategy;
strategy of following the leader.

The high price strategy occurs when the product is at the introduction stage. The goal of this strategy is to maximize profits through buyers for whom the product has high value and is willing to pay a high price for it. As long as there is no competition in the market, the company remains a temporary monopoly.

The average price strategy takes place at all stages of the product life cycle, except for the decline stage. This strategy is followed by companies that consider making profits on a long-term basis.

The price breakthrough strategy is used at all stages of the life cycle. It is particularly effective when price elasticity of demand is high. This is a strategy for making long-term profits, not quick profits, as is the case with the skimming strategy.

The target price strategy provides for a constant amount of profit received, regardless of changes in prices and sales volumes. This strategy is used by large business companies.

The goal of a discount pricing strategy is to increase sales. It takes place at the final stage of the product life cycle and is carried out in the form of discounts, promotions, etc.

The “follow the leader” strategy is the setting of prices for new products not in strict accordance with the price level of the leading company. The pricing policy of the leading enterprise in the industry is taken into account. The cost of the product may be lower, but not significantly. The main condition is a minimum of differences in the company's new products compared to most offerings on the market. In this case, prices for goods approach those of the market leader.

Development of a pricing strategy in marketing

The pricing strategy development process includes the following steps:

collection of information (selection of regulations, cost estimation, formulation of goals, identification of potential buyers, competitors and clarification of marketing strategies);
strategic analysis (assessment of government regulation, financial analysis, competitor analysis, segment market analysis);
creation of pricing strategies.

At the first stage, information is collected and all costs are analyzed. Particular attention is paid to the selection of regulations that describe the state of prices in the industry, the possibility of state regulation of prices, etc. The company's financial goals are also specified.

At the second stage, the information received is subjected to a thorough strategic analysis. The government's influence on the company's pricing policy is predicted.

As part of this stage, the following indicators are calculated:

the amount of net profit;
the amount of sales growth with a decrease in prices and an increase in overall net profit;
the maximum permissible decrease in sales volume when the price rises, when the total amount of net profit falls to the existing level.

As a result of the analysis, the company receives relevant and objective information for choosing a pricing strategy.

Pricing Strategies – a reasonable choice from several price options (or a list of prices), aimed at achieving maximum (normative) profit for the company in the market within the planned period. In modern pricing practice, an extensive system of pricing strategies is used, which is generally presented in Fig. 21.2.

Differential Pricing Strategies based on the heterogeneity of buyers and the possibility of selling the same product at different prices.

Competitive Pricing Strategies are based on taking into account the competitiveness of the company through prices.

Assortment pricing strategies applicable when a company has a set of similar, related or interchangeable goods.

Rice. 21.2. Pricing strategy system

Discount pricing strategy in the second market based on the characteristics of variable and fixed costs of the transaction. It is beneficial for the company to use this method. For example, new drugs often face competition from identical but much cheaper generic drugs. The company is faced with a choice: either maintain a fairly high price for patented drugs and lose part of the market, or reduce the price, incur losses on this difference, but maintain or expand the sales market. A possible strategy is to differentiate pricing between branded and generic drugs.

Periodic discount pricing strategy based on the characteristics of the demand of various categories of buyers. This strategy is widely used for temporary and periodic price reductions on off-season fashion items, off-season travel rates, matinee ticket prices, daytime beverage prices, and peak utility prices. The strategy is also used when reducing prices for outdated models, prioritizing prices for scarce goods and in the “cream skimming” strategy, i.e. setting a high price for a new, improved product based on consumers who are willing to buy at that price. The basic principle of the strategy is this: the nature of price reductions can be predicted over time and it is known to buyers.

Random discount pricing strategy (“random” price reduction) relies on search costs motivating the random discount. In this way, the firm tries to simultaneously maximize the number of buyers who are informed about the low price and those who are uninformed and buy at a high price rather than at a low price. Therefore, this strategy is also called “selling at variable prices.” The main application of the strategy of “random” discounts is the heterogeneity of search costs, which allows firms to attract informed buyers with discounts.

Market Penetration Pricing Strategy based on the use of economies of scale. This strategy is used to introduce new products into the market.

Pricing strategy based on the learning curve based on the benefits of acquired experience and relatively low costs compared to competitors. With this strategy, those who buy a product early in the business cycle realize savings over later buyers because they buy the product at a price lower than they were willing to pay.

Pricing signaling strategy is based on the firm's use of buyer trust in the pricing mechanism created by competing firms. Price signaling attracts new or inexperienced buyers to the market who are unaware of competitive products but consider quality important. A good example is the success of some expensive but low-quality products.

Geographic pricing strategy refers to competitive pricing for contiguous parts of the market. This strategy in foreign practice is called FOB (free station of departure).

“Set” pricing strategy used in conditions of uneven demand for non-fungible goods.

Mixed set strategy creates the effect of comparable price, the set is offered at a price that is much lower than the prices of its elements. Examples of this strategy include season tickets, set meals, and stereo and car parts packages.

Pricing strategy "set" based on different assessments by customers of one or more of the company's products.

Pricing strategy “above par” used by a firm when it faces uneven demand for substitute goods and can gain additional profit by increasing the scale of production.

Pricing strategy "image" used when buyers focus on quality based on the prices of interchangeable goods.

Pricing strategic choice – This is the choice of pricing strategies based on an assessment of the company's business priorities. Each company in market conditions has many options for choosing pricing strategies. The company's goals and consumer characteristics determine this choice (Table 21.2).

Table 21.2

The relationship between firm goals, customer characteristics, and strategies

Pricing strategies are part of the overall development strategy of the enterprise. A pricing strategy is a set of rules and practices that should be followed when setting market prices for specific types products manufactured by the enterprise. Let's consider pricing strategies depending on price levels, different markets, their segments and customers, depending on the degree of price flexibility or the specific market situation.

An enterprise's pricing policy is the basis for developing its pricing strategy. Pricing strategies are part of the overall development strategy of the enterprise.

Pricing strategy- this is a set of rules and practical methods that it is advisable to adhere to when setting market prices for specific types of products produced by an enterprise.

The development of a pricing policy and strategy for an enterprise involves a number of works and calculations:

· firstly, the optimal amount of costs for the production and marketing of the enterprise’s products is determined in order to make a profit at the level of prices on the market that the enterprise can achieve for its products;

· secondly, the usefulness of the enterprise’s products for potential buyers is established (consumer properties are determined) and measures to justify the compliance of the level of requested prices with its consumer properties;

· thirdly, the value of product sales or market share for the enterprise is found at which production will be the most profitable.

Decisions on prices are made in close connection with decisions on production volumes, cost management, product design and engineering, advertising and sales methods.

1) Pricing strategies are very diverse. Yes, depending on the price level highlight: high price strategy; low price strategy and medium price strategy.

High price strategy. The goal of this strategy is to obtain excess profits by “skimming the cream” from those customers for whom new product has great value, so they are willing to pay more than the normal market price for the purchased product. The high price strategy is used when the company is convinced that there is a circle of buyers who will demand an expensive product. This applies:

· to new goods appearing on the market for the first time, protected by a patent and having no analogues, i.e. to goods that are at the initial stage of the “life cycle”.

· to goods targeted at wealthy buyers who are interested in the quality and uniqueness of the product, i.e., at a market segment where demand does not depend on price dynamics.

· new products for which the company has no prospects for long-term mass sales, including due to the lack of necessary capacities.

· to test the product, its price and gradually bring it closer to an acceptable level.

A high-price strategy is justified in cases where there is a guarantee that there will be no noticeable competition in the market in the near future, when the costs of developing a new market (advertising and other means of entering the market) are too high for competitors, when the raw materials required for the production of a new product are components are available in limited quantities, when the sale of new goods may be difficult (warehouses are full, intermediaries are reluctant to enter into transactions for the purchase of new goods, etc.). By setting high prices for such products, the manufacturer, in essence, takes advantage of its monopoly (usually temporary) on them.

Pricing policy during the period of high prices is to maximize profits until the market for new goods becomes the object of competition.

Average price strategy (neutral pricing). Applicable in all phases of the life cycle except decline, and is most typical for most businesses that consider profit making as a long-term policy. Many enterprises consider this strategy to be the most fair, since it eliminates “price wars”, does not lead to the emergence of new competitors, does not allow firms to profit at the expense of customers, and makes it possible to receive a fair return on invested capital. Large corporations in most cases are content with a profit of 8-10% of share capital.

Low price strategy (price breakout strategy). The strategy can be applied at any phase of the life cycle. Particularly effective when price elasticity of demand is high. Applicable in the following cases:

· in order to penetrate the market, increase the market share of their product (policy of exclusion, policy of exclusion). This option is appropriate if costs per unit are falling rapidly as sales volume increases. Low prices do not encourage competitors to create similar products, since in such a situation they provide low profits;

· for the purpose of additional loading of production capacities;

· to avoid bankruptcy.

The low-price strategy aims to achieve long-term, rather than “quick” profits.

2) Depending on different markets, their segments and customers There are differentiated pricing strategies, preferential pricing strategies and discriminatory pricing strategies.

Differentiated pricing strategy. This strategy is used by enterprises that establish a certain scale of possible discounts and surcharges to the average price level for different markets, their segments and customers, market characteristics and its location, purchase times and product modifications. This strategy provides for seasonal discounts, discounts for the quantity of goods purchased, discounts for regular partners, the establishment of different price levels and their ratios for different goods in general nomenclature manufactured products, as well as for each of their modifications. To achieve this, complex and painstaking work is carried out to coordinate a common product, market and pricing strategy.

The differentiated pricing strategy is used in cases where:

· the market is easy to segment;

· it is possible to reimburse the costs of implementing this strategy through additional revenues as a result of its implementation;

· it is impossible to sell goods at low prices in those market segments where they are already sold at high prices;

· it is possible to take into account favorable and unfavorable perceptions of differentiated prices by consumers.

The differentiated pricing strategy allows you to stimulate or, conversely, restrain sales of various goods in different market segments. Variants of this strategy can be considered the preferential price strategy and the discriminatory price strategy.

Preferential pricing strategy. This strategy is used to set prices for goods for buyers in which the company is interested. The preferential price policy is carried out as a temporary measure to stimulate sales. Its main goal is to increase sales volumes. Preferential prices are set, as a rule, at a very low level, perhaps even lower than the cost price (in this case they are called dumping). Such prices can be used as a means of competition or when it is necessary to eliminate overstocking of the enterprise’s warehouses.

Discriminatory pricing strategy. Following this strategy, the company sets the maximum price for a product in a certain market segment. This strategy can be applied to incompetent buyers who are not oriented in the market situation, those who do not show much interest in purchasing the product. This strategy is also applicable when concluding various types of price agreements between enterprises. This strategy is also possible when carrying out government agencies discriminatory pricing policies in relation to the country in which the purchasing enterprise operates: the introduction of high import or export duties, the establishment of mandatory use of the services of a local intermediary.

3) Depending on degree of price flexibility distinguish between the strategy of uniform prices and the strategy of flexible, elastic prices.

Single price strategy. With this strategy, a price is set that is the same for all consumers to strengthen their trust in the enterprise and its product. This strategy is easy to implement and opens up wide opportunities for catalog and mail order trading. The single price strategy is used infrequently in practice and is limited by time, geographic and product boundaries.

Strategy of flexible, elastic prices. This strategy relies on changing the level of sales prices depending on the buyer's ability to bargain. Flexible prices are usually used when concluding transactions on individual goods and custom-made goods.

4) Pricing strategies are often focused on specific market situation. At the same time, they distinguish: a strategy of stable, standard prices; strategy of unstable, changing prices; price leadership strategy; competitive pricing strategy; prestigious pricing strategy; strategy of unrounded, “psychological” prices; mass purchasing pricing strategy; a strategy of closely linking prices to product quality; strategy of proactive price changes.

Strategy of stable, standard prices. This strategy involves the sale of goods at constant prices over a long period of time and is typical for mass sales of homogeneous goods with which the market acts large number competing enterprises, for example prices for transport and magazines. In this case, regardless of the place of sale, goods are sold to all customers at the same price for quite a long time.

Strategy of unstable, changing prices. According to this strategy, prices depend on the market situation, consumer demand, or the production and sales costs of the enterprise itself, which sets different price levels for different markets and their segments.

Price leadership strategy. The essence of this strategy does not involve setting prices for new products in strict accordance with the price level of the leading company on the market. We are only talking about taking into account the pricing policy of the leader in the industry or market. The price of a new product may deviate from the price of the leading company, but within limits determined by quality and technical superiority. The fewer differences in a company's new products compared to most products offered on the market, the closer the price level for new products is to the prices set by the industry leader. The use of leader prices occurs when the enterprise acts as a relatively small (in terms of market share or sales volume of a given type of product) manufacturer in the market; then it is best for him to set prices by analogy with the prices for products of leading companies in the industry. Otherwise, large manufacturers will be forced to declare a “price war” and push the outsider company out of the market.

Competitive pricing strategy. This strategy is associated with an aggressive policy to reduce prices by competing enterprises. This strategy assumes that the enterprise, in order to strengthen its monopoly position in the market, expand market share and maintain profit margins from sales:

· or carries out a price attack on its competitors and reduces prices to a level below the prevailing market level. This is acceptable for markets with high elasticity of demand or for markets in which the loss of a certain share could negatively affect the company's activities. Price reductions occur due to cost control and regular measures to reduce them;

· or does not change prices, despite the fact that competing enterprises have already done so. As a result, it is possible to maintain the volume of profit received from the sale of goods, but a loss of market share is also possible. This strategy is suitable in markets with low elasticity of demand. Perhaps the company does not have sufficient financial resources to expand production capacity, therefore it is unacceptable for him to reduce prices, which will lead to a significant loss of profit. In addition, buyers may decide that the goods sold by the company have become less prestigious or, what is much worse, of lower quality.

Prestige pricing strategy. This strategy involves the sale of goods at high prices and is designed for market segments where special attention is paid to the quality of the product and brand and there is low elasticity of demand, as well as a sensitive response to the prestige factor, i.e. consumers do not purchase goods at prices that considered too low.

Strategy of unrounded, “psychological” prices. These are, as a rule, reduced prices versus some round sum. For example, not 100 rubles, but 99; 98. Consumers get the impression that the company carefully analyzes its prices and sets them at a minimum level. They like to get change.

Many consumers do not buy goods precisely because prices are psychologically unattractive.

Mass purchasing pricing strategy. This strategy involves selling a product at a discount if it is purchased in large quantities and is effective if one can expect an immediate significant increase in purchases, an increase in consumption of the product, attracting the attention of buyers of goods from competing enterprises, and solving the problem of clearing warehouses of outdated, poorly selling goods.

A strategy of closely linking price levels with product quality. This strategy involves setting prices at a high level. These prices are not for the mass market. The reasons are the high quality of the product, the guarantee of the enterprise, its prestige and image. Buyers believe that high prices mean high quality.

Strategy for proactive price changes. An enterprise that independently forms a pricing policy may eventually face the need to change prices itself, which does not depend on the actions of other market participants. Such a change in prices is possible both upward and downward and is accompanied by an ambiguous reaction from consumers.

It should be noted that in practice, the listed strategies are rarely used in their pure form. Mostly there are various combinations of them. For example, the “cream skimming” strategy can be used in conjunction with a differentiated pricing strategy, a non-rounded pricing strategy, etc. In particular, the Japanese company Sony has a differentiated price grid for various buyers: domestic or foreign, regular or new, using goods purchased in Japan or taking it abroad. At the same time, the price level changes depending on the phase of the life cycle: at the stage of introduction and growth, the product is sold at the highest prices, and at the stage of decline - at the lowest. All these types of prices are usually expressed in non-round numbers.

The following signs of poor functioning of pricing strategies can be identified:

· product prices change too often;

· pricing policy is difficult to explain to consumers;

· participants in distribution channels consider the share of profit received to be insufficient;

· decisions on prices are made without sufficient and reliable information about the state, structure, and dynamics of demand;

· there are too many price options;

· the price does not correspond to the selected target market;

· too large a proportion of goods are given a price discount or prices are sharply reduced at the end of the trading season to liquidate inventories;

· too many consumers are attracted by competitors’ prices and discounts;

· too much time and effort of the company’s sales staff is spent on “bargaining”;

· when pursuing a pricing policy, the company comes into conflict with the legally established pricing procedure.