Essay About Concept Of Pricing And Leverage Price Differentiation Opportunities

Pricing – Marketing an Sales
Pricing – Marketing an SalesKey takeawaysToday we learn the concept of pricing : what to do , how to do , what are the common mistakes , etc. Quoting the professor a good marketeer must grow higher than the market. There are 3 different trajectories of growth that we must look for  : Market growth , Organic share gain , Inorganic Growth . The variable with higher impact on profit it is price : a 1% increase on price will led in average to a 14% increase in operating profit . Pricing power is very important : a company that is able to set its price under the competition will be able to gain the majority of market share( increasing sales , revenues ,profit, etc). Asymmetry of information is a major problem : buyers know less than sellers . Pricing should follow a customer-backed approach , blend art and science, incorporate the whole product, leverage price differentiation opportunities, leverage performance-based trade terms . There are 3 approaches to setting the price : cost plus pricing , competition based pricing , value based pricing . There are common mistakes that people take when it comes to pricing : pricing decisions are too biased toward cost structures ; price don t vary between different market sgments ; pricing policy is defensive ; not taking in account opportunities to capitalize differentiation ; poor communication strategy of products. (this class was a bit extensive and I m not able to put all the concepts in here )Freemium CompanyPersonally I started to hearing the term freemium in the industry of games . As curiosity there is a South Park episode concerning the freemium companies. So as example of one company that uses freemium as a price strategy , Supercell it´s a gaming developer company that offers its games for free . However in order to get a higher performance in a shorter period of time you have the possibility to pay . That way it allows people to low their adoption barriers , try the game and get addicted . By getting addicted , people will usually end up paying for some upgrade in the game.