Modenas Pest Analysis
2.2 Pricing Strategy
2.2.1 Factors affecting pricing decisions
There are few types of market in marketing, one of the market is Oligopoly Competition. Oligopoly competition is a market form in which a market or industry is dominated by a small number of sellers.
MODENAS good example of Oligopolistic Competition. Its market consist of a few sellers who are highly sensitive to other’s pricing and marketing strategies. According to the theory, the decisions of one firm therefore influence and are influenced by decisions of other firms. Strategic planning by MODENAS needs to take into account the likely responses of the other market participants. There are few sellers because it is difficult for new sellers to enter the market and it will alert …show more content…
MODENAS is in under market Skimming Pricing strategies. This company set a high price for a new product to as to “skim” revenues layer by layer from the market. The high price attracts new competitors into the market, and the price inevitably falls due to increased supply. MODENAS makes fewer, but more profitable …show more content…
Furthermore, the cost of producing a smaller volume cannot be too high that they will cancel the advantage of charging more. Other competitors should not be able to enter the market easily due to barriers of entry and undercut the high price easily.
2.2.3 Product Mix Pricing Strategies There are five types of product Mix Pricing Strategies, MODENAS is good example of Optional-product pricing. MODENAS will attempt to increase the amount customers spend once they start to buy. Optional ‘extras’ increase the overall price of the product or service.
For example, MODENAS will charge for optional extras such as those additional function in the car or some additional car spare part when their customer buy their main product. From here, can observed that MODENAS is offering to sell optional or accessory products along with their main product.
2.2.4 Price Adjustment
2.2.1 Factors affecting pricing decisions
There are few types of market in marketing, one of the market is Oligopoly Competition. Oligopoly competition is a market form in which a market or industry is dominated by a small number of sellers.
MODENAS good example of Oligopolistic Competition. Its market consist of a few sellers who are highly sensitive to other’s pricing and marketing strategies. According to the theory, the decisions of one firm therefore influence and are influenced by decisions of other firms. Strategic planning by MODENAS needs to take into account the likely responses of the other market participants. There are few sellers because it is difficult for new sellers to enter the market and it will alert …show more content…
MODENAS is in under market Skimming Pricing strategies. This company set a high price for a new product to as to “skim” revenues layer by layer from the market. The high price attracts new competitors into the market, and the price inevitably falls due to increased supply. MODENAS makes fewer, but more profitable …show more content…
Furthermore, the cost of producing a smaller volume cannot be too high that they will cancel the advantage of charging more. Other competitors should not be able to enter the market easily due to barriers of entry and undercut the high price easily.
2.2.3 Product Mix Pricing Strategies There are five types of product Mix Pricing Strategies, MODENAS is good example of Optional-product pricing. MODENAS will attempt to increase the amount customers spend once they start to buy. Optional ‘extras’ increase the overall price of the product or service.
For example, MODENAS will charge for optional extras such as those additional function in the car or some additional car spare part when their customer buy their main product. From here, can observed that MODENAS is offering to sell optional or accessory products along with their main product.
2.2.4 Price Adjustment