“The key evangelism for products is marketing setting and engaging in pricing decision is preaching, like preaching, pricing decision is automatically exceptional. Teach-lines and punchline affect preaching it affects pricing consideration. Just like the psychological understanding of a preacher, setting prices for products requires substantial consideration. Evangelism of products is affected by internal as well as the external factors.”
Pricing consideration and approaches
Pricing consideration and approaches refers to the act of deciding or evaluating the amount of money payable for a product. It is the amount of money that has been priced or decided over a certain product or service.
Factors to consider when setting price
Product and service monopoly
Monopoly refers to dictating the use of one product or service without seeking an alternative or change to the use of the product or service. Where there is a monopoly of a product or service, the price is bound to be high as the consumers will have no alternative but to pay the price no matter how high it is.
Market availability is defined as goods or services able to find a ready market without delay. When market availability is met it will obviously have a great impact on the price of the commodity as will increase the price and reduce demand.
Challenges companies face in pricing approach
Most companies across the globe face numerous challenges in fixing and determining prices of goods and services, Samsung Company marketing programs have been hindered by several factors. This is brought about by different factors and causative agents that need to be clearly addressed in order to come up with an equilibrium price. The following factors have greatly influenced pricing of products and services;
Samsung Company has a coherent technological framework which has to boost the company reputation in the market. Currently, technology continuously changes day in day out at a speed of light. It is very important for companies to embrace change or be left behind. For instance products and services need to be at par with technology in order to be accepted in the market. When this fails then it adversely affects the price of the product or service.
Mobile company Samsung ad to review technology used in manufacturing the smartphones after many of its customers shifted gear to products from another company which had already embraced technology. Samsung was therefore forced to hire experts in communication technology in order to meet the changing market.
for an instance we can view the recent pricing changes in SAMSUNG S6 over the specific period of time .
It is the availability of other products or services in the market with similar functions or features. When this happens there is a high competition in the market it directly dictates the pricing of a product or service. For instance competition for consumers in the market has been of great challenge to many companies considering that they have to try and impress the consumers in order to win their hearts.
The company directors were forced to review prices in order for their products to be considered by consumers. These decisions affected the company profit margins a lot but were a welcome to all consumers as they would now afford Apple phones.
Solutions to these challenges
All companies and organizations should embrace technology in all its business productions in order to be at par with the ever changing technology. Companies should consider all factors during pricing and consult with all stakeholders in order to avoid overpricing or under pricing of its products affecting the company’s operations and making customers shy away from their products. All companies should ensure that investing greatly on innovation will make the company produce unique products eliminating unhealthy competition.
Name: Keerthikrishna. Gamasany
Student ID: 215208896
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