Pricing Strategies in marketing Custom Essay

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Pricing Strategies in marketing Custom Essay

Pricing Strategies in marketing Introduction The essay critically looks into pricing strategies in marketing employed by Procter & Gamble (P&G). Factors to be considered in the development of a pricing strategy, the relationship between costs and prices and the relationship between a firm’s pricing strategy and its product, distribution, and promotion strategies are explained in this paper. Finally, the essay comments on P&G pricing strategies. P&G company number one world maker of household products is constituted of health and well being, household care and beauty units. According to Nagle & Holden (2002), pricing strategy refers to the plans or mechanisms used by companies in determining what a company will actually receive in exchange for its products and or services. With the realization that price manipulation of products can help organization cut it self an edge in this competitive business world, P&G in early 1990 changed its pricing and promotion strategies. It employed value pricing strategy in which it enhanced advertising, restricted its distribution channels deals and at the same time decreased its coupon promotions (Bollen & Greg, 2004)