Question

100 POINTS PLEASE HELP

Your sales and marketing team is trying to come up with a pricing strategy for your new product. You can choose one of the following: competitor-focused pricing, cost-focused, or customer-focused pricing. Describe which you would select and give a strategy example.

Answer 1

I would choose the cost-focus strategy because it depends on what the product is. The sales team should determine where the product would be placed on the cost leadership spectrum as it can help determine the value of what the product is worth. To add-on, cost-focused pricing focuses on building a reputation for the product as a good product for people to buy therefore your company becoming a niche leader in that product industry. In the end though, any product pricing strategy can work but it all depends on the situation and the resources around a business and product. Hope this helps!