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    Pricing Procedures For International Products

    2010/10/15 18:03:00 141

    Pricing Procedures For New Products

    Assume enterprise Already known new product In terms of cost, should we adopt a cost plus pricing method? The cognitive value of new products is better than that of competitor products; whether we need to investigate the price level of customers or end users? The pricing procedure of a general enterprise can be divided into six steps: determining the pricing target, measuring market demand, estimating the cost of goods, analyzing the competitive situation, choosing the pricing method, and determining the final price. this Pricing procedure Include the following steps:


    1) determine enterprise pricing targets


    The pricing targets of enterprises are different, some are for developing new markets, others are for maximizing profits, others are to increase market share, and some are for competitors. Confirming the pricing target is the primary task of pricing.


      2) assess market demand.


    Identify target market needs through market segmentation, identify potential users and their needs.


      3) estimating the cost of goods


    Design a system applied to various market segments to determine the marginal cost and special cost of each market segment.


      4) analysis of competition situation


    Estimate possible competitors.


    1. understand competitors' price level;


    2. analyze the strengths and weaknesses of competitors.


    5) choose pricing method


    (1) confirm the content of customers or users' needs;


    (2) determine the price level of the product;


    (3) decide the difference of price and function between different products;


    (4) explore the impact of price changes and decide the most favorable pricing method under different market conditions.


    6) Pricing


    (1) confirm the feasible pricing scheme.


    1. estimate the expected price level and the timing of sales;


    2. estimate the direct cost of the product;


    3. identify the degree of cost difference when the product is changed.


    (2) estimate the direct and indirect costs of production and marketing at different sales levels.


    (3) calculate the expected profit of each market segment under different sales levels.


    (4) determine the final price.

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