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Marketing Plan 5

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Pricing objective

  1. Competitive pricing
  2. Profitability pricing
  3. Skimming pricing
  4. Premium pricing

Pricing Constraints

  1. Pricing
  2. Promotion
  3. Products

For this purpose we can think about our customers and competitors on the basis of the pricing. Hence customer based pricing with respect to competitors requires the following.

  • Check the number of competitors in the Computer Hard ware industry and expected customers in the market.
  • Check the price of the other competitors and customer interest.
  • What are the pricing methods used by my competitors?

Price can be best defined as

Price = Resources given up / goods received

There are different pricing strategies these are as

  • Cost based. It involves the contribution pricing with respect to average pricing and total cost pricing.
  • Profit based. It largely depends upon the target markup, target rate of return and target profit.
  • Custom pricing. It consists of the timed pricing, flexible pricing and bid pricing.

Fixed cost remains the same in the Computer Hardware industry. Fixed costs are not limited to deprecation on costs, taxes and general overhead expenses in this Computer hardware industry. On the other hand the variable cost changes with the rate of the output sale of the Computer hardware company. This variable cost includes the cost of goods sold, labor charges, feed, and fuel charges.

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Various pricing methods are taken into cost, profit value and competition-oriented pricing. Cost plus is the convenient way and is popular amongst the retailers and wholesalers. Price that the Computer Hardware company charges will be somewhat between one that is too low to produce profit and that is too high to product demand. The approaches used are the cost based approach, pricing and competition based pricing.

For this marketing plan when you are starting this Computer hardware industry the main focus is the failure of the company. When these failures are addressed then you are less likely to fall victim. The break- even analysis is based on the assumptions that are made for average per-unit revenue, fixed costs and average per-unit cost.

The final price is taken into account on the brander’s quality and the competitor in the market. Finally that price is selected that is not too low and not too high and equals to that perceived value to consumers.

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