Marketing Blog – Article Example
Pricing Strategy Pricing Strategy Given the different demographic characteristics of consumers in the market, marketers are normally faced with difficult situations when they want to make prices for every consumer in the market. For this reason, there is a high tendency by the marketers to group consumers into different segments using the different consumer characteristics, hence coming up with different segments of customers, sometimes known as market segments (Salin, 2012).
After a market has been divided I to different segments, there is need to differentiate the products into different forms and sizes that will meet the needs of different market segments. This therefore calls for product differentiation to fit every consumer’s needs. Differentiation makes products to be in different forms and sizes, hence, different prices will apply.
In real life, Coca Cola products in the city centers are normally sold in big sizes of containers such as of 10liters, 5 liters, or 2 liters. However, in the remote villages, one will only find these products being sold in small sizes such us in 1 liter, 500ml, 300ml or even smaller quantities. This phenomenon does not just happen by chance, but through critical pricing strategies by marketing managers.
Marketing managers have divided the market into segments and identified that consumers in the city centers have a lot of disposable income, hence purchase in bigger quantities. However, the consumers in the villages may be having no or little income, hence can only be able to purchase in smaller quantities. These differences in quantities also have differences in prices tied to them.
Salin. (2012). Pricing Strategy. Economic Times , 1-2.