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The pricing target of online marketing must comprehensively consider various influencing factors

Source: Shangpin China | Type: website encyclopedia | Time: 2015-06-14
Pricing refers to that under the guidance of specific pricing objectives, enterprises, based on the study of cost, demand, competition and other conditions, apply the price decision theory to Website production The specific method of product price research. It is a complex task for enterprises to set prices, and various influencing factors must be comprehensively considered.

The goal of online marketing pricing refers to the goal that enterprises want to achieve by setting the online marketing price of products. It is the basis for enterprises to choose pricing methods and formulate pricing strategies. Different enterprises and products have different marketing goals in different markets and at different times, so they have different pricing goals. In online marketing activities, enterprises generally have the following pricing objectives:

1. Survival objectives

When enterprises have excess production capacity, or face fierce market competition, or try to change customer demand, enterprises need to maintain their own survival as the main goal. At this time, the price strategy of the enterprise is to adopt a low price. As long as the price can make up for the variable cost and part of the fixed cost, the survival of the enterprise can be maintained. However, this practice is by no means a long-term strategy for the development of the enterprise. It is necessary to seek timely changes.

2. Current profit maximization goal

In some cases, the price setting of some enterprises aims to maximize the current profits. Generally speaking, price elasticity of demand

Larger products can achieve small profits but quick turnover, so enterprises that want to maximize profits can set low prices for such products, while for products with less price elasticity of demand, they can maximize profits in the current period through the high price strategy. From the perspective of enterprise development, the current profit maximization is a short-term behavior of enterprises, but at a certain stage of enterprise development, it is a positive and effective practice.

3. Target of maximizing market share

Some enterprises try to obtain the highest market share of a commodity market through the implementation of price strategy, and get higher benefits from the economies of scale of products in terms of cost and long-term profits. In this case, enterprises generally set the lowest possible price to pursue the leading position in market share. Generally speaking, the fixed price target can be adopted only when the enterprise meets the following conditions:

(1) The demand price elasticity of the product is large, that is, the low price can effectively promote the expansion of market share.

(2) The production or sales of this product has obvious economies of scale. The cost of a single product will decrease with the increase of production and sales, while the profit will increase with the increase of sales.

(3) The enterprise has enough strength to bear the economic losses that may be caused by low prices in the short term.

(4) Low prices can deter existing or potential competitors.

This kind of pricing target should be carefully implemented. Especially for small and medium-sized enterprises with weak competitiveness, the risks behind low price competition should be avoided.

4. Optimization goal of product quality

The enterprise can also aim at the most advanced product quality, and always implement the guiding ideology of "product quality optimization" in the production and marketing process. This requires enterprises to use high prices to make up for the high quality of products and the high cost of research and development. At the same time, products with high quality and good price should also be accompanied by corresponding high-quality services. This is suitable for luxury products with small price elasticity of demand, because customers are interested in the performance, taste and social status of these products, and price is not the primary consideration, such as Cartier diamond rings that lovers dream of owning, Rolex watches that successful men dream of, etc. This kind of target has a narrow application scope.

Different pricing targets have different meanings and application conditions, and enterprises can set product prices accordingly. In the current network marketing, the market is still in the initial stage of development and development. The main goal of enterprises entering the network marketing market is to occupy the market, seek survival and development opportunities, and then pursue the profits of enterprises. At present, the pricing of online marketing products generally adopts the strategy of low price in order to seek a foothold in the rapidly developing online virtual market. The network market is mainly composed of consumer mass market and industrial organization market. The consumer mass market is a growing market, and enterprises can use the lowest price strategy to occupy the market when facing this market. In the industrial organization market, buyers are generally commercial institutions and organizations, and the purchase behavior is more rational. Enterprises should adopt a win-win pricing strategy in this online market, that is, to reduce the supply and procurement costs between enterprises and organizations through Internet technology, and to jointly enjoy the increase in the value of both parties brought by cost reduction.
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