Pricing strategies are defined by companies according to their development cost. Changing focus from the domestic market to international requires innovation in all the settings such as technology. Most companies are faced with the challenge to maintain a competitive edge to survive and be prosperous. Strategies are therefore planned to achieve the set goal of the company for growth. Therefore, to cut down on the number of car accidents in the UK, the introduction of the new product the Voice Activated Brake System will be of great help in solving this problem. For this product to enter both the domestic and international markets there is a need to set up a plan in pricing strategies.
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Pricing is an element that keeps on changing from time to time in the market as it directly dictates the power of the consumer to buy the product or the services being offered, in this case, the Voice-Activated Brake System (Rosenbloom, 1999). Therefore, pricing here has been used as a strategic tool in the market as the prices offered will affect how the consumer or the customer will react to the products offered. According to Tamil (1999), pricing in a market can single-handedly corporate profitability. For instance, an average of two percent price increase can multiply into a ten percent increase in a company’s improvement which is five times as profitable as a two percent increase in its equivalent output.
Domestic production and wage innovations can lead to relative prices for products across different companies as worldwide prices influence the determination of the domestic price, thus this makes it difficult for the domestic pricing. Therefore, for the Voice Activated Brake System (VABS) to enter into the domestic and international markets, a pricing plan has to be determined for it to get through to the customers, thus helping reduce car accidents. In international markets, proper planning is needed since exchange rates change through their effect on the costs of inputs, and outputs play a big role in determining the competitive position of the domestic markets which have no direct international operations.
Another plan for pricing strategies is the implementation of the cost-plus method which is simple, easy to be understood, justified to the customers, and hard for the marketer to argue. This method sets the prices at the production costs adding a certain profit margin. This will encourage many people to order this product (Voice Activated Brake System) as they will understand easily and thus help in the reduction of accidents in the UK.
To reduce car accidents in the UK, formulating objectives will be very important as they will be set by the company’s priority whether in short-term or long–term productivity of the product that is the Voice Activated Brake System (McCalley, 1996). For example, the returns targeted on the investment, targeted markets, maximizing both long –run and short–term profits, quick recovery in investment development, making the product interesting and exciting to the consumers, and making sure that prices are desensitized to the customers.
In conclusion, through the introduction of the new product in the UK, Voice-Activated Brake System, it will be possible to cut down the number of car accidents. This will be enhanced by the pricing strategies planned to make the product enter into domestic and international markets, such as the setting of the objectives, making multi-level pricing that will be accountable for all the possible sales channels.
- McCalley, R.C. (1996). Marketing channel management: People, products, programs,and markets. New York. Greenwood Publishing Group.
- Rosenbloom, B. (1999). Marketing channels: a management view. Pennsylvania. Dryden Press.
- Tamil, N. (1999). Pricing strategies: marketing and price management. New York. McFarland and company.