The pricing strategy of a business organization determines the amount of sales thus the profits. The prices of different products depend on their quality or their brands. Customers aim at having value for the money that they spend when purchasing different products or services. When determining the price of a given product, there should be the consideration of a number of factors. Some of these factors include the target market, the format of product mix and the competitive advantage of the business.
The target market of a company will determine the prices that will be put for the different products. For instance, due to high demand of products by customers who are income earners, the products will be priced highly. On the other hand, the products which are required by the customers from poor regions will have low prices. Additionally, the economic status of the state within which the company is operating will determine the prices of the products. Pricing is also dependent on the product mix that is applied by the company. There are instances when products of different brands are mixed to reduce the cost of one of them in order to meet the customers' needs.
The company will also have to consider the long term advantages of pricing products at given costs. For instance, when the prices are stated highly for certain products, customers may opt for other companies where the prices are low. On the other hand, some products may be priced low so that the company deteriorates in its performance as less or no profits will be obtained. As a result, the company should consider all the factors that are related to pricing which will put the company at a competitive advantage.
What I am looking for which will help you go in the right direction. Some of the things I am looking for in the pricing section is:
- What is the company's pricing policy High/ Low? EDLP?
- What is its strategy compared to its competition?
- Are online prices the same as in store?
If you could add these to your writing and talk more about what Target does for their store not just retail stores in general that would be great. Kaleigh is going to edit everyone around 3 o clock today if you could have it done before than that would be great!
https://en.wikipedia.org/wiki/Everyday_low_price
https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/pricing-8/specific-pricing-strategies-63/high-low-pricing-319-1055/
https://mikeroels.blogspot.com/2005/11/edlp-vs-highlow-pricing.html