Marketing concept Essay Example | Topics and Well Written Essays - 500 words - 3

Marketing concept - Essay Example Distributional and promotional aspects should also be accounted for in pricing such that the end result of the process is consistent with all the variables in the company’s interests. The primary purpose of pricing strategies is to specify the role of price in the implementation of marketing strategies (Drummond & Ensor 180). The aim of any given company in business is to market its products in order to gather a sufficient market share, thereby enhancing its profitability and a diversified portfolio. In this regard, the applicability of pricing strategies at an individual level cannot be refuted. Pricing strategies in the marketing context have constituted my personal experiences in two ways. These ways relate to the actions engaged by companies and firms in a bid to satisfy their customers and remain profitable at the same time. One of such personal experiences in the context of pricing strategies relates to penetration pricing. A company undertakes such a move in order to stimulate demand for its products. This is done by offering the consumer or the buyer a low price, such that the buyer feels favored and therefore compelled to make purchases. Rational buyers seek to maximize their welfare, and do I, given the interests of the company. When a product whose quality is not compromised is provided at a cheaper price, its demand rises. I have made several purchases under this notion, thus the applicability of penetration pricing in several transactions that I engage in. Another pricing strategy that relates to my personal experience is that of premium pricing. This factor is based on the competitive nature of firms. Firm compete for the market share in order to reap the highest benefits at the minimum cost possible. Competition may necessitate that a firm set its price higher than the competitive price. However, this is only possible when the