Application of Pricing Strategies in Marketing Activities

In the second situation, a new company is manufacturing a dishwater detergent similar with other competitor’s detergent.&nbsp. Mainly, for such a company, their objective would be to make sales in a highly competitive environment. Due to the increased cost of manufacturing the detergent, the company also intends to generate enough money to recover this cost as fast as possible. With such a case scenario, marketers may decide to use full cost pricing. With this strategy, the company intends to recover all cost of production, both valuable and fixed cost. Marketers only determine cost of goods and services after calculation of all the cost, hence may not mind so much on the generated profits. Another strategy relevant for this case would be penetration pricing strategy.&nbsp. With strategy the company reduces prices for their products with the intention to penetrate a competitive market, where companies may be selling similar products for the same markets.
&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp. In the third case scenario, determining how much to sell for a new product in area where competitors are likely to sell the same product requires proper decisions by marketers. In this case, as new business in a competitive environment, the company must firstly be in a position to get valuable market share.&nbsp. In order to have this company make sales for the new iPhones, marketers may decide to use promotional pricing. In this strategy, companies set prices lower than the normal price list temporarily in order to attract new customers.