Pricing and Promotion of a Product

Pricing and Promotion
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Pricing and Promotion
Price strategy can be conceptualized as the method used by the company to establish prices for its products and services. It helps the sellers to choose the best prices for products to maximize profits while considering customers and market demand. Pricing strategies during the development stage are influenced by price skimming factors, which enable firms to market their products. Accordingly, pricing techniques during growth and maturity stages are influenced by factors such as competitive pricing in the business environment (Ali & Anwar, 2021). Moreover, the pricing strategies during the decline stage are anchored on bundle pricing factors in which business firms decide to combine complementary products and sell them as one product geared at increasing average revenue per consumer (Ali & Anwar, 2021).
The pricing approaches that would be most effective considering the product life cycle and the market’s needs are reflected below. Development is the first phase of a product’s life cycle, where the new product is launched and distributed to establish its presence in the market. In this cont...