management industri 4

PLANNING RATE PRODUCTS IN THE MANAGEMENT OF ANY INDUSTRY
AND FACTORS AFFECTING
part 4

C. FACTORS INTO IN THE PRICING

Each company tries to set the right price, so that the pricing policy to provide good benefits. Pricing policy will provide benefits for companies in both the short and long term.
The factors that must be considered in determining the selling price for a product based on the opinion Kotler (1996) is:

1. Market Conditions
The competition is affecting pricing and marketing is a tool. Prices are set by competitors usually a benchmark pricing. Currently, the market is very competitive, with a proven pop brand products. Competition with one another trying to get a lot of consumers.

2. Product Price
In determining the price the company should know the price competitors in the market (price awareness) and the price that consumers are given.

3. The demand elasticity and amount of demand.
The definition of elasticity is to know how large the demand is that the selling price.
Besides, very necessary response to consumer price changes associated with the use of the product.

4. Setting a goal price
The goal set the price producers connect with the company's strategy completely. Generally, the purpose of price determination is

a. Maximize sales and market penetration
b. Maintaining the quality and the importance of service
c. Maximize profits.

5. Equation and the Product Life Cycle.
In the win market for the company of much-needed gap with competitors products. For example, in the aspect of quality, service, and other factors. the position of the introduction of products associated with the time and amount of sales. With the introduction and understanding of the condition of the product manufacturers will be more easily and freely determine the tariffs.

With the approach value based pricing, many companies that successfully build the scheme better price and better understand what-what makes consumers willing to buy the products offered.
Behind the various challenges that must be faced by the company, there are several ways to overcome barriers to determine the price policy. The company must focus on three things as follows:

1. ) Focus on Customer Value
In this case, companies do not emphasize the features of their products or tawarakan only on the price of these products, but more important that companies should focus more on the benefits, both functional or emotional benefits that can be received from customers for these products.
2. ) Giving the product differentiation and Services
Product or service that the company should have given a higher value from competitors. If not, then the company will be trapped in a situation where companies will be forced to play the price war. This will effectively destroy the ability of firms to set a premium price. This means that if a company can not make a differentiation, the company will be difficulties in setting prices based on the value or benefits that may be issuing.
3. ) All efforts to understand and value the Potential Source
To be able to run with a value based pricing is good, then the company should understand the value or benefits received by customers. This means companies must be able to understand what the customer wants and needs. If companies have to understand this then the next thing is the efforts to benefit from products to customers that the products that customers have the benefit of consumption for himself. More intense when the benefits from these products exceed the expectations of customers, the most likely to create loyal customers.
Then, using the value based pricing, customers will benefit from it (the product or service company) and other than the value based pricing also has the ability to produce a product or service that is more superior than the competitor products.
Pricing strategy also must consider up to the level where consumer loyalty to certain brands, whether still in the cognitive scale only, or have reached the level devosi. According to Pimentel and Reynolds (2004) devosi consumers is the level of brand loyalty is so intense not affected by the high prices, scandals, bad publicity, poor performance and loss of promotion activities. Some experts also call as a religious brand, which is called as the highest level of brand loyalty. Thus, it is expected in this paper will find a special strategy in the determination of the price for each level of loyalty to the brand and other products.