Question

what are the keys to a successful pricing strategy for a new product?

Answer 1

Answer :-

Pricing is one of the classic " 4 Ps " of marketing

a) Product

b) Price

c) Place

d) Promotion

Its one of the key elements of every B2C strategy.

The factors to be considered for developing pricing strategy for a new product:-

1) Reflect the value as provided versus competitors price

2) Match what the market will truly pay for offering

3) Support brand

4) Enable to reach revenue and market share goals.

5) Maximize Profits.

Building an effective pricing stratgey for product is key to successful sales .

The first element of price setting is understanding where product is positioned in the market.

The second element of price setting is determining what the demand is for product and understanding the price elasticity of demand in market.

Price Sensitivity needs to be considered when setting the price for a product and to be considered at the time of change of price (price increases or decreases)

The building a pricing strategy must include understanding and knowing Cost structure through and Price Analysis.

Competitive Pricing Strategy to be considered.