Pricing Strategy Issues - Article Example

There is a 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 centres are normally sold in big sizes of containers such as of 10liters, 5 litres, or 2 litres. However, in the remote villages, one will only find these products being sold in small sizes such as in 1 litre, 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 centres have a lot of disposable income, hence purchasing 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.