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Demand oriented pricing method of online marketing

Source: Shangpin China | Type: website encyclopedia | Time: 2015-06-18
Demand oriented pricing is a method that takes customers as the center and determines the price according to the market demand situation and the difference of consumers' feelings for products, also known as market oriented pricing or customer oriented pricing. The modern marketing concept believes that all production and operation of enterprises must be centered on the customer's needs, and Marketing website construction Products, prices, channels and promotions should be fully reflected. Therefore, the demand-oriented pricing method is in line with the concept of online marketing. Its characteristics are: it can flexibly and effectively use price differences. Even for the same product with the same cost, the price will change with the change of market demand, not directly related to cost factors.

In online marketing, there are three commonly used demand-oriented pricing methods:

1. Understand the value pricing method

Understanding the value pricing method refers to pricing according to consumers' understanding of the value of goods, not according to the cost of goods, that is, enterprises use marketing mix, especially the price factor in it, to influence consumers, so as to form an ideal value concept of enterprises, and then set commodity prices according to this value concept. The key to understanding the value pricing method is that enterprises should have correct value estimates and judgments about the relative value that consumers understand. Enterprise pricing is based on customers' understanding of product value. That is to say, most consumers believe that this product is of great value to them, and at this time, enterprises will have higher prices; On the contrary, if consumers think the value is small, the enterprise will have a lower price. With this pricing method, enterprises need to compare their products with competitors' products in the market to make appropriate estimates. Therefore, enterprises should conduct marketing research first. DuPont is one of the practitioners who understand the value pricing method. When DuPont produced new synthetic fibers for carpet industry, it was found through demonstration that the price acceptable to carpet manufacturers was 1.4 dollars/pound (1 pound=0.453 6 kilograms). In order to make it easier for the market to accept new products, DuPont finally put new products on the market at a price slightly lower than 1.4 dollars/pound.

2. Demand variance pricing method

The differential pricing method, also known as the differential pricing method, is a very common pricing method that sets different commodity prices according to different market demands. This method makes different pricing for products according to different customers' needs, purchasing psychology or purchasing time and place. For example, two rooms of the same standard have different prices only because of different orientations, although the cost of building these two rooms and their utility are the same. Generally speaking, the demand difference pricing method requires full segmentation of the target market, and there should be obvious differences in demand between the market segments.

3. Reverse pricing method

The reverse pricing method refers to the reverse calculation of the wholesale price and ex factory price of goods after the enterprise calculates its own operating costs and profits according to the final consumer price acceptable to consumers. This pricing method does not take the actual cost as the main basis, but takes the market demand as the pricing starting point, and strives to make the price acceptable to consumers. Because the price is fixed, enterprises must work hard to save costs and improve labor productivity if they want to make profits.
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