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Dynamics in Developing Pricing Strategies

Dynamics in Developing Pricing Strategies

Copyright: © 2012 |Pages: 25
ISBN13: 9781466609693|ISBN10: 1466609699|EISBN13: 9781466609709
DOI: 10.4018/978-1-4666-0969-3.ch005
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MLA

Dr. Rajagopal. "Dynamics in Developing Pricing Strategies." Systems Thinking and Process Dynamics for Marketing Systems: Technologies and Applications for Decision Management, IGI Global, 2012, pp.118-142. https://doi.org/10.4018/978-1-4666-0969-3.ch005

APA

D. Rajagopal (2012). Dynamics in Developing Pricing Strategies. IGI Global. https://doi.org/10.4018/978-1-4666-0969-3.ch005

Chicago

Dr. Rajagopal. "Dynamics in Developing Pricing Strategies." In Systems Thinking and Process Dynamics for Marketing Systems: Technologies and Applications for Decision Management. Hershey, PA: IGI Global, 2012. https://doi.org/10.4018/978-1-4666-0969-3.ch005

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Abstract

The most responsive element in the marketing functions is considered to be the pricing, which drives consumer decision making. Prices respond to supply and demand pressures in real time or near-real time. In this chapter, how systems thinking can be applied to develop right pricing strategy is discussed. Product pricing and tactical moves that help stabilizing the business and build its performance in the future among competitors have also been emphasized in the chapter. Also examined in the chapter is how many companies serving business markets believe that practicing value-based pricing is changing. The benefits of value based pricing approach are revealed in improved relations with customers that often lead to longer-term, more profitable relationships. It is argued here that pricing is a creative exercise, and companies should stay focused on profits. Further discussion provides guidelines for creating effective base prices using systems thinking approaches and enhancing profitability of firms.

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