THE MARKETING MIX: PRICING STRATEGIES

The Marketing Mix: Pricing Strategies

The Marketing Mix: Pricing Strategies

Introduction

Procter & Gamble "(Procter and Gamble) is one of the largest multinational corporations with offices in dozens of countries around the world. It occupies a leading position in the market of consumer goods sales and a number of other indicators. It needs to decide where to position its product on the quality and price as well as considering other factors in setting its pricing policy such as wages, rent, interest or profit, or mark distinguishing characteristics of the product, etc. These are the things that tend to make prices more rigid, i.e. less sensitive to changes in supply and demand. Therefore, the price is a basic controller in the economic system because it affects the distribution of these inputs. In addition, there are some psychological aspects of the price that must be taken into account by marketing executives as the fact that consumers rely heavily on price as an indicator of product quality. Especially when they make purchase decisions without information complete. Of course, perceptions of product quality by consumers may also be influenced by the reputation of the shop, advertising or promotion of the product and other variables.DiscussionThe Pricing Strategies That P & G Use

Prices are set trying to exploit potential competitive situations by setting prices equal to, higher or lower than the industry as technology benefits, costs, production or distribution that are available. Procter and Gamble offers superior quality products to the rest of the competitors. A strategy of low prices (discounted prices) may be a product of lesser quality or infer additional services, but not necessarily, because P & G can take advantage of technology, manufacturing. They can also set at lower prices. They are selling their products at a low prices low prices it is selling at a loss to promote or to eliminate competition (Kotler, 2004).Factors involved in the Development of a Pricing Strategy

In developing the pricing strategy of P & G, they face a large number of constraints. Over time, their relative importance can vary. Goals and ...