Important pricing strategies or exporters
Updated: Mar 31
Summary:
Today we discuss the pricing strategy objectives for exporters. There are eight objectives that an exporter can achieve through their pricing strategy. Firstly, pricing can help organizations achieve their fundamental objectives, such as sales or profit maximization. Secondly, pricing decisions can directly affect sales revenue and overall profitability. Thirdly, low pricing can help penetrate the market by driving away competitors. Fourthly, suitable price research can generate additional revenue for the exporter in the international market. Fifthly, exporters can increase market share for their product by charging competitive prices in international markets. Sixthly, goods sold at a reasonable price can help develop brand loyalty in the long run. Seventhly, exporters should fix up such a price that is reasonable and final to face competition. Lastly, consumers usually correlate product quality with its price, so very low or very high prices should be avoided.
Hello and welcome. Today, I will be sharing with you an article that discusses the pricing strategy objectives that an exporter intends to achieve. There are eight objectives that an exporter can achieve through his pricing strategy.
Here are the ten bulletins that outline the pricing strategy objectives for an exporter:
Helps to Achieve Objectives: Every organization has some fundamental objectives, such as sales maximization, profit maximization, and so on. Pricing helps organizations achieve these objectives by suitably modifying their pricing strategy.
Increases Profitability: Pricing decisions directly affect the sales revenue and thereby overall profitability. For example, low pricing helps market penetration but reduces revenue. On the other hand, skimming pricing generates more revenue if demand conditions are favorable.
Helps to Penetrate the Market: When there is intense competition in the market, low pricing helps penetrate the market by driving away competitors. Low pricing attracts consumers and thereby helps increase market share for the product.
Helps to Skim the Cream: Where there exists considerable consumer surplus, the same can be skimmed by introducing innovative features in the product or altogether new products in the market. Thus, suitable price research can generate additional revenue for the exporter in the international market.
Helps to Increase Market Share: Exporters can increase market share for their product by charging competitive prices in the international markets. Low price is one of the important considerations that affect the buying decisions of the consumers.
Helps to Develop Brand Loyalty: Goods, which are sold at the right and reasonable price, help to develop brand loyalty in the long run. Consumers continue to buy such products even if new entrants, selling goods at a lower price, enter the market.
Helps to Face Competition: Exporters face competition from three angles - sellers from their own country, from other countries, and domestic suppliers in the importing country. Thus, exporters should fix up such a price, which should be reasonable and, as far as possible, final and non-negotiable.
Reflects the Quality of the Product: Generally, consumers correlate quality of product with its price. Low priced products reflect low quality and vice versa. Hence, exporters should avoid charging a very low price. At the same time, very high prices are also to be avoided.
These are the eight pricing strategy objectives that an exporter can achieve through their pricing strategy.