Page 12 - PROJECT BASED LEARNING LANGUAG
P. 12
PRICE SETTING
In order to be successful in marketing the product, Protect Kids management
sets the price accordingly. Price is the only element of the marketing mix that provides
income and income for the company, while the three elements (product, distribution,
and promotion) cause costs (expenses). Besides that, price is an element of the mix
that is flexible, meaning that it can be changed quickly. In contrast to product
characteristics or commitment to distribution channels. The last two things cannot be
changed / adjusted easily and quickly, as they usually involve long-term decisions.
• Purpose of Pricing
• Profit Oriented Goals
Protect Kids will choose the price that will generate the highest return. This goal is
known as profit maximization. Therefore, the company uses the profit target approach,
namely the level of profit that is appropriate or appropriate to be adjusted to quality
and service.
• Volume Oriented Goals
Prices are set in such a way that Protect Kids products can reach the target sales
volume or market share.
• Image Oriented Goals
Image (image) of a company can be formed through a pricing strategy. Companies
can charge high prices to establish or maintain a prestigious image. Meanwhile, a low
price can be used to form an image of value, for example by providing a guarantee
that the price is the lowest price in a certain area.
• Price Stabilization Objectives
The aim of stabilization is carried out by Protect Kids by setting prices to maintain a
stable relationship between a company and the price of an industry leader.
• Pricing Methods
Broadly speaking, pricing methods can be grouped into four main categories, namely
demand-based, cost-based, profit-based, and competition-based methods. Protect
Kids uses the “Demand-Based Pricing Method :, that is, a method that emphasizes
factors that influence customer tastes and preferences rather than factors such as
cost, profit and competition, the customer's own demand is based on various
considerations.
