Question

What types of information should Diana and her team review to determine appropriate pricing for the U.K. market? *

Answer 1

Pricing is usually one among the foremost difficult things to urge right in business. There are several factors a business needs to consider in setting a price:

Competitors – a huge impact on pricing decisions. The relative market shares (or market strength) of competitors influences whether a business can set prices independently, or whether it's to follow the lead shown by competitors
Costs – a business cannot ignore the value of production or buying a product when it involves setting a asking price . In the long-term, a business will fail if it sells for fewer than cost, or if its gross profit margin margin is just too low to hide the fixed costs of the business.
The state of the marketplace for the merchandise – if there's a high demand for the merchandise , but a shortage of supply, then the business can put prices up.
The state of the economy – some products are more sensitive to changes in unemployment and workers wages than others. Makers of luxury products will got to drop prices especially when the economy is during a downturn.
The bargaining power of consumers within the target market – who are the buyers of the product? Do they have any bargaining power over the price set? An individual consumer has little bargaining power over a supermarket (though they will take their custom elsewhere). However, an industrial customer that buys substantial quantities of a product from a business could also be ready to negotiate lower or special prices.
It is important to know that prices can't be set without regard to other parts of the marketing mix. The distribution channels used will affect price – different prices could be charged for an equivalent product sold direct to consumers or via intermediaries. The price of a product within the decline stage of its product life-cycle will got to be less than when it had been first launched.

A pricing strategy may be a method for determining the optimum price of a product or service. The Pricing Strategy Matrix describes four of the foremost common strategies by mapping price against quality.

The matrix quadrants show:

Economy Pricing – Setting a coffee price for low-quality goods.
Penetration Pricing – Initially setting a coffee price for a high-quality product then increasing it.
Price Skimming – Initially setting a high price for a new low-quality product and then reducing it.
Premium Pricing – Setting a high price for high-quality goods.
Think about the type of product that you are launching and the market that you are targeting. And consider factors such as your costs, the competition, and the objectives of your company, brand or product.

It's also important to review your pricing strategy, particularly if market conditions change