Before discussing the pricing strategy In detail here is a short introduction About what this video contains here we Will give you a detailed explanation About pricing strategy and why it's Needed also we will discuss about Different tools which are used to decide The price and also the important Parameter on which we calculate the Price this video contains every detail So just be with us at the end of the Video Before discussing the pricing strategy We need to understand the price term What a price is price any product or Service price is an amount of money that Is given by a buyer to the seller in the Exchange for some Services some Goods or Some food items A business can use a variety of pricing Strategies when selling a product or Service to determine the most effective Pricing strategy for a company senior Executives need to First identify the Company's pricing position pricing Segment pricing capability and Competitive pricing reaction strategy Before discussing this topic let's have A small discussion about the mixed Marketing strategy term which is Categorized by product price place and Promotion If you have any issue related to your Product either is a quality problem or
Any type of problem your product is Going through then this term is Considered a mixed marketing strategy or Product strategy the next term is Considered as pricing which we will Discuss further in detail Place this is also a very important term Because without being at any prime Location you cannot grow your business Promotions this is also a very important Step to sell your product and attract The audience because you only can Promote your product or service with 100 Effort If you are still watching the video then Please like and comment on the video for The algorithm after discussing the mixed Marketing term let's understand pricing Strategy in detail with an example let's Assume Jack is a person who started his Bakery shop name yummy bakery shop Though he is very good at baking cakes And cookies and very much familiar with His products he exactly know what his Customers want and he is good at baking Techniques his customers tastes and all The small information related to his Bakings and customers but he is not much Aware of pricing strategy so we can help Him deciding his price based on pricing Strategy there are many reasons why we Should have detailed knowledge of Pricing techniques because when we will Not calculate pricing techniques
Correctly the shopkeeper May bear a loss Which is not good for his business or Customers May bear a very high price so Obviously in this case they will not Prefer to take that item or service and Buy this shopkeeper again faces the loss So deciding a suitable price for any Good or service is a very important step For any businessman and before any price Confirmation there are lots of Researchers in calculation that we came To an endpoint called final price let's Take one more example by which we can Learn and understand this term much more Easily and conveniently there is a Person named John he just start coffee And some snack stall but he is not very Much familiar about pricing techniques Because he is not much aware of theories And strategies he is not as much Educated as he can calculate his All-profit and loss so here we have to Understand his problem and give him Solution so before discussing and Deciding the price let's have a look on The item he's offering to his customers And what is his cost price when we asked Him he told us about his item coffee and Sandwich now if we start calculation First we have to calculate the price of Sugar milk and price of the coffee beans Which he is using to make the coffee he Told us his total cost of making a cup Of coffee is minimum five dollar so
Obviously we have to decide it's priced More than five dollar because five Dollar is his cost price and if he is Doing business there should be some Profit otherwise he cannot do his Business on a long term so here we Calculate his total cost is five dollar And one dollar for his physical work or Services so we decided the price in a Round figure of ten dollar and this is The steps that we have to follow for Sandwiches well first calculate all the Expenses which he expected by the raw Material of the sandwich-like bread Slices salt cheese sliced mayonnaise Sauce black pepper vegetables and all Small ingredients and assume that it's Costed him around ten dollars for one Sandwich after included his physical Investment we will calculate it as Fifteen dollar so here we have decided Price for his sandwich is just fifteen Dollar which is convenient to both Shopkeeper and customers also and this Is the pricing strategy which anyone Will charge charge you if he or she is Giving you any good or any services On the other hand we have to understand One more thing that this price should Not be much higher than other Competitors because if you sell your Product on a very high rate customers Will not prefer you they will chose Someone else over to you so this is also
A very important turn which you have to Put in your mind that your product or Service price should also be in the Market Row in which others also provide The same product deciding the price for Any product is though looks like a very Easy task but when it is performed it Seems very hard because there are many Small segments of calculation which you Only can understand and assume there is No specific data by which you can Calculate or perform all the actions Let's discuss some cases how companies Decide their product price let's take The example of Oreo biscuits because in The factories there are many steps which Is performed like harvesting the crop Transportation the crop from fuel to the Company their quality check their Production there are many more steps Which increase the cost price after Calculating all these things we have to Calculate it's making charges labor fee Machine charges electricity bill and Many more small calculations companies Calculated this all in a standard form And many decide the price of their Product in which they include all the Small detail like packaging and all Before deciding the price for anyone you Have to understand the importance of the Product and demand the product in the Market if there is more availability of Product in the market you have to lower
Your price to finish your stock Otherwise you will face a big loss next If there is limited stocks in the market For your product and there are lots of Demand in the market for your product You can limit the stock and increase the Price for the product because you know There is a need of your product in the Market and whatever price you will Choose people will buy your product Let's take one more example to Understand the pricing concept you have Seen many times in any festive season or Any celebration times our online stores Provide us a good discount and listed Their maximum items as 99 or 999 price Can you tell me why they are listed Their item as 99 or 999 instead of 100 Or 1000 it's also a technique to attract Their customer just by decreasing one Penny price they are offering you a Beneficial deal and customer fall for Their strategies and purchased a lot in This price price and thought they are Doing a profitable shopping but it's Just a strategy to grab the attention of Customer by displaying the lower price And attract the customer 100 time more Than before this techniques is known as Marketing techniques pricing techniques Is also a subsequential part of Marketing strategies because when you Understand the marketing term very well Then only you can calculate and conclude
The pricing strategy and able to perform Action on this here are one more example Where we can see many online stores or Offline stores give us discount on price By giving buy one get one offer discount This is also a techniques under pricing Strategy in this section they increase The price double or triple times as its Original price on a single good and Announce another item is free in just This price while they are charging us The same amount but people fall for Their trap and thought it is discounted And we are receiving two item in just One's costs and buy the more good or Product as our need this all known as Marketing strategies the main motto of Marketing strategy is increase the sell First understand your customer and their Me or create the need and then fulfill Their need and charge them a good amount Of money in multinational companies There are many persons who are just Hired by the firms to make these types Of strategies and create more first Among the customers so they buy more Product and Company gain a good profit This is same as done for pricing also They hire some members just to check the Quality of the product and deciding the Price by performing all the calculations As their cost money their investment Their labor charge and all the small Detail which is performed by the Company
Employee and by this process all the big Multinational companies and firms decide Their prices and make their marketing Strategy So this is it for this video further we Will update you with more interesting Topics like this so stay tuned with us And please do like share and subscribe To our Channel if there any suggestion You are most welcome in the comment box Kindly give your feedback and also Mention the next topic on which you want Our next video and thanks for watching Thank you
