Pricing Challenge and How to effective pricing your product
Pricing strategy is a critical challenge to marketers because ...
BPTO is most effective for competitive situations where the issues are limited to simply price
and brand. Applicable in a ...
This article is compiled by AMR Group to provide updated information on markets. AMR Group
puts the best effort to obtain ...
of 3

Pricing challenge and how to effective pricing your product

Pricing strategy is a critical challenge to marketers because it directly affects how consumers’ perception to product or service. If the product / service is priced too high, sales will be slope down rapidly, or worse when consumers will switch to substitutions. Therefore, pricing optimization becomes more vital to marketers.
Published on: Mar 4, 2016
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Transcripts - Pricing challenge and how to effective pricing your product

  • 1. Pricing Challenge and How to effective pricing your product Pricing strategy is a critical challenge to marketers because it directly affects how consumers’ perception to product or service. If the product / service is priced too high, sales will be slope down rapidly, or worse when consumers will switch to substitutions. Therefore, pricing optimization becomes more vital to marketers. To overcome pricing challenge, marketing researchers apply research methods to identify the price that satisfy consumers’ expectation: pricing the product competitively and pricing the product individually. Pricing the product competitively (Brand Price Trade Off – Discrete Choice Models) Marketers attempt to price product/ service competitively when assessing existing products or when the new product innovation falls outside of their typical new product development testing program. Most frequently new innovations fall outside of the program when:  The decision to introduce the product has been made and specific market decisions such as placement and pricing are left to be determined  Innovations are new enough that competitive context better defines the innovation in terms of price and usage  Price is only one of a number of product features that need to be determined as an optimal offer. Brand price trade off - BPTO: In Brand Price Trade Off, marketing researchers allow consumers to choose product/service from a group of products/ services. Then, in the next step, consumers choose product/service from group of products/ services at different price. Marketing researchers repeat this test 5-10 times per consumer to identify the highest price that consumers are willing to pay for that particular product/ service.
  • 2. BPTO is most effective for competitive situations where the issues are limited to simply price and brand. Applicable in a competitive framework and the simplicity of the task for both consumers and questionnaire developers are some competitive advantage of BPTO to other pricing research method. (To be continued) AMR Group is an expert in Vietnam and its markets. The team is local but with international training and experience, operating to global standards. AMR Group helps brands bloom in Vietnam through lean, focused & reliable marketing research from VINAMR Marketing Research & Consultants; marketing & brand strategy with AMR. VINAMR Marketing Research & Consultants provide world class lean, focused and reliable research through deep understanding of the brief, international quality field, professional data handling & decision- orientated analysis, action focused recommendation. AMR use insights from VINAMR Marketing Research & Consultants to deliver effective marketing & branding consulting, retail consulting & training, seminar & training: Brand War Compiled by AMR Group (Marketing Research in Vietnam-Nghien Cuu Thi Truong Viet Nam) on 2014 Source: Strategic Initatives For more articles, like us: www.amr.com.vn For enquiries, email Mr. Nguyen Thanh Tung (CEO of AMR Group) research@vinamr.com.vn
  • 3. This article is compiled by AMR Group to provide updated information on markets. AMR Group puts the best effort to obtain the most accurate and timely information available from various reliable sources. The article should be best considered a reference and indicative only. It is not an offer or advice for any actions related to any assets. AMR Group provides no warranty or undertaking of any kind in respect to the information and materials found with, or linked to the report and no obligation to update the information after the report was released. AMR Group does not bear any responsibility for the compiled information, or any consequences arising from its use. For more details of Brand price trade off: Brand price trade off – a perfect measurement for your pricing strategy - http://amr.com.vn/news-insights.html?id=127 Marketing research – brand price trade off - http://amr.com.vn/news-insights.html?id=104

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