Implementing pricing strategy

Implementing pricing strategy

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Implementing pricing strategy

Organizations often face challenges in the process of implementing new pricing strategies. Often, new products do not sell because of the challenges of strategy in the market. There are many challenges that can be faced by the many products in life. New pricing strategies are mainly done to alter prices, owing to different market forces. Most organization fail in the strategizing part because they are mainly targeting to increase the prices. Most consumers fail due to failure to sell value alongside the product. consumers want to see value in any product that they are buying. Without seeing value, they are likely to avoid the product completely.

When doing a pricing strategy, most companies compare with the competitor. In as much as this is good from a competitive perspective, it is a reflection of the focus on money only and not the quality. Consumers are very keen and they can pick out a copied trend. As a result, consumers shun those products that have a common trend. Lack of originality has hurt many brands (Pollono & Vela, 2019, 76). Brands that do not have a creative team will fail in its strategy of pricing. Organizations are likely to fail because they deployed the right ideas wrongly rather than having the wrong ideas.

The biggest challenge is understanding market dynamics. All markets change constantly. Therefore, it is important to understand how the market is set up. Some of the trends include preference, spending habits and spending power. The failure to grasp these important concepts in the market will result in a failed pricing strategy. It is good to understand that the people spend according to their ability. While putting up a pricing strategy, it is good to understand how much such people can spend and align your prices in that direction. In this way, the strategy is less likely to fail.

References

Pollono, E., & Vela, J. (2019). Implementing pricing strategy by developing and implementing effective discounting practices. Pricing Strategy Implementation, 71-77.