Download Tatyanych Principles effective pricing policy enterprises

L.S . Tatyanych
PRINCIPLES EFFECTIVE PRICING POLICY ENTERPRISES
Summary. At this article an essence, principles objectives and decisions are shown which
need to be guided in process of enterprise pricing policies. The author concentrates the attention on
the analysis of theoretic methodological grounds of the formation of price policy on the enterprise
based on marketing approach usage. The researcher gives grounds to the objective necessity to
apply complex analysis of the enterprise activity and take into account existing tendencies of the
world experience concerning the research of the conditions and factors influencing price policy
formation.
Key words: pricing, market economy, pricing analysis, profit.
Problem. In a competitive market set priorities for technical, trade,
communication, marketing and other enterprise policy. Proper assessment of market
conditions and opportunities the company provides the final determination of market
prices, in turn, is a powerful tool for the operation and development of the company.
The development of Ukraine's economy is characterized by increased competition
among competitors' prices, control prices and so on. That is why pricing policy
according to zahalnoshvalenyh principles (which are the basic provisions, rules and
approaches to this complex process) and targets businesses in virtually all industries.
Therefore, the main prerequisites for the formation of an effective pricing
policy in a market economy is a focus on consumers and their ability to pay, taking
into account the competitiveness of both the Company and its competitors, integrated
and continuous study of factors that affect pricing, monitoring, and applying optimal
methodology for determining prices are essential components of every successful
company that seeks to develop and receive appropriate income. Inconsistency
existing theoretical and methodological tools pricing policy needs practice on the
necessity for its improvement.
Analysis of research and publications. The theoretical and practical aspects
of pricing problems of improvement of exercise price risk management process
subject of many scientific studies. So the features of pricing policies in enterprises
studied by many scientists, including: L.Shkvarchuk, S. Dugin A. Naumchyk A.
Voloshenko, A. Pokatayeva, O.Varchenko, B. Paskhaver, O.Livinskyy, V.
Kitlyarenko, N. Bad weather, S.Bezkorovayna and many others. Market public price
always fluctuates around the price of production, reflects the level of necessary labor
costs, and its value is based on categories such as demand, cost, commodity-money
circulation. However, a number of tasks methodological support pricing strategy on
consumer goods in a competitive environment not fully developed, require
clarification and development in the current economic conditions. These issues,
include: ensuring that the overall pricing strategy and competitive strategy of the
company, relationship pricing strategy and competitive advantages, taking into
account in pricing the risks and effects of inflation, the organization of information
support and others.
The article is to determine the nature of pricing policy, its main trends,
conditions and factors of marketing through the use of an approach based on
objective need for a comprehensive analysis of the company and current trends of
international experience. To do this: clarify the role of pricing in the sale of products
(goods and services); The model pricing policies of enterprises in market conditions;
define the legal basis pricing policy in Ukraine; justify the need for the introduction
of strategic decisions on pricing.
Statement of the basic material. In modern conditions in Ukraine to achieve
enterprise competitiveness was necessary to introduce a comprehensive effective
pricing management in enterprises. Organization of effective management of pricing
enterprises complex formation requires appropriate systems to ensure implementation
of its functions. This process requires not only the costs of different resources, but
also develop methodological bases onwhich it should take place. The main
methodological issues are determining the list of systems for pricing management in
enterprises and the basic principles of their formation.
Today, enterprises and public and private sector pricing issues are taken on the
basis of their own costs and prices of competitors. But this is not enough, because it is
important in determining the domestic prices [1] proanalizuvaty all factors of the
company, and external, and
Nowadays it is already impossible to use old regulatory approaches to pricing.
Not formed and new conditions for the use of market methods of pricing. That is why
we face the challenge of adapting methods of determining market prices to the
economy.
Problems pricing due to several reasons, chief among which is a violation of
relationships between system development and product markets and the absence of
perfect amount of information every product today is not the only market. Large
companies are developing and creating production assortment of products with
options for different tastes. This method of diversification is called "horizontal", but
there is a "vertical", which describes three levels of quality [2]. Expanding binding
offer goods and complicates pricing. The interdependence of markets affect pricing.
If markets can be divided, pricing may be relatively simple. Then each market may
have a price. Earlier international pricing was mostly simple, each country can set
prices pursuing their interests. Today the global market developing "parallel" markets
and reduced incomes major manufacturers. Pricing is complicated by the presence or
absence information. The requested information is not always easy to get, but modern
technology can quickly distribute pricing information worldwide. Buyers every year
are becoming more informed and demanding. Impossible is offer the same product at
different prices, so apply differentiated prices. By setting the price of goods, the
manufacturer should have as much reliable information. Only under this condition
can move on to setting prices. The analysis of the information received will make a
correct pricing decision [3]. Information on prices must be systemic (Figure 1)
comprehensive data about competitors, competing products, the production and
expenditure, the ratio between the earnings from the sale of product and profit,
government policy in the field of business, tax policy. One reason for the complexity
is the presence of severe pricing competition. Some firms use in their activities
innovations, others are working on the principle of imitation "[4]. Therefore, we must
be able to realistically assess their position in relation to the goods of competitors.
Depends on whether actually set a higher price for the goods, or vice versa - to bet on
lower prices. Analyzing the price information, you can minimize unpredictable
situations in pricing. It is not always easy to determine the costs taken into account in
the prices, although this issue is in the competence of the enterprise. The upper level
of the goods is determined by demand for it, and determine the minimum size of its
total costs of production. It must be remembered, if the firm lowers prices. You may
be a real threat of losses as a result of pricing below cost. Do not often view prices this is not an indicator of effective price policy [5].
Equally challenging is the concept associated with the study and assessment of
demand response customers to price changes. Any changes in the economy affecting
prices. You must be able to respond to these changes. Changing prices, each firm
must carefully examine the likely response of consumers and competitors, as well as
the reaction of suppliers, distributors and government agencies. If competitors change
prices, it is important to understand their intentions and the likely duration of
innovations [6]. When assessing price risk must proceed with its ymovirnostnoyi
characteristics, which need to justify the use of the theory of probability and
mathematical statistics. Primarily meant the functioning of any market - pricing
mechanism, in which the interaction and mutual influence pricing policies of
companies participating in a particular market [7]. Through grounded from a
theoretical point of view and provided methodological process of pricing policy of
the company is a reliable tool in the realization of their market strategy, on the other
hand - a powerful lever control its activities.
Pricing information support of the company can be defined as a system of data
collection and processing, which allows to analyze the impact factors of pricing
policies and price to make an informed decision. Objectives pricing policies are
divided into three groups: goals, focused on marketing; goals, profit-oriented; goals,
focused on the current situation. There are pricing methods: cost method; focus on
demand; focus on price competition, pricing based on the real value of the goods and
values felt (based on the perception of the consumer product or its actual value);
pricing for sales promotion; pricing targeted at international markets; combined
method of pricing; method of pricing based on a target rate of return; mathematical
modeling; parametric method [3].
The main terms of market pricing are: the formation of state legal framework
that ensures a functioning market economy; economic independence of market
entities; establish relationships between market entities on a commercial basis; of
legal provisions for economic regulation; sufficient freedom of pricing, availability of
competition. There are such kinds of market pricing: pricing, which is under the
direct control of the state or municipal by means of fixing prices, limiting their
restrictions, subsidies, etc .; Pricing conditions monopolization of the market (in the
form of monopolies or oligopolies), hence the adoption of one of the parties of certain
compulsory conditions; contractual and contractual pricing that involves the seller
and the buyer defined obligations; free pricing, in which the activity of both parties
not limited obligations of [3; 4].
The role of price in relation to other elements of the marketing mix is
determined by the following factors: the structure of the market; purpose of the
enterprise; assortment of goods sold; level price sensitivity of consumers;
competition; the nature of demand; the possibility of market segmentation; the scope
and specifics of the enterprise; the degree of product differentiation; market
conditions. Marketing research pricing factors in the formation of price policy shall
be financed in the following areas: identification of factors affecting the price
decision-making; Grouping factors of pricing, definition of internal and external
factors; assessment of the nature and degree of influence of the main external and
internal factors of pricing; Rankings external and internal factors of importance in the
decision-making prices; the importance of determining the level of pricing factors at
each stage of the pricing policy of the company; analysis of the dynamics of pricing
factors; mutual evaluation factors of pricing.
Comprehensive analysis of consumer price sensitivity appropriate to carry out
the following stages: analysis of the factors that cause general changes in demand;
preparation of an information base analysis of demand; studies of price elasticity of
demand (by analyzing factors of price elasticity of demand); assessment of crosselasticity of demand; study the factors of price sensitivity of consumers; analysis of
the impact of price elasticity of demand for sales volume of the company; assessment
of sensitivity of buyers to price-based research system of value orientations of
consumers.
The importance of the decisions related to pricing policies can prove this:
- Price is assigned directly determines the level of demand and therefore sales;
- The sale price immediately determines the profitability of all activities, and,
for a small change is able to greatly affect profitability;
- Selling price affects the general perception of the product or brand and
contributes in positioning the brand in the eyes of potential customers. Price
inextricably linked with the concept of quality and is part of the brand image;
- The price is a convenient base for comparison of competing products or
brands;
- The price should be laid down spending on advertising and promotion on
packaging that reinforces the positioning of goods.
In practice, now can be used such known types of pricing policy:
1) penetration - characterized by relatively low prices, making it possible
penetration of the company into new markets, creating sufficient demand;
2) "removal cream" - used on goods that belong to the category of fashion
novelties. It is characterized by maximum high prices during the market launch of the
new product;
3) prestigious price - high commodity prices really high quality;
4) traditional pricing - is to focus on those traditions that exist on the market
prices for a particular product;
5) price differentiation - is selling the same product to different customers at
different prices;
6) consecutive passing on market segments - used as a saturation segment
dannym goods;
7) policies elastic (flexible) prices - the company provides quick response to
changing relations of demand and offerings in the market;
8) price stability - typically used for the goods of mass demand when prices
have remained stable for a long time;
9) gradual decline in prices - is characterized by relatively high prices at the
time to market for new products, and the transition to the stage of its growth - a
gradual decline in prices;
10) survival - the main aim is to stay in business, but because the goods are
sold at low prices or even at a loss. The main thing - wait until the situation changes
for the better [4, p. 172].
Pricing policy of the enterprise may focus on cost, product features, demand
segments and con kurentiv, which means that the price should be used as a means to
adapt product to market conditions.
A systematic study of price competition will solve a number of practical
problems: adequately assess the positive and negative aspects of the pricing process;
determine the priority objectives of pricing policy; respond quickly to price changes
competitors; strengthen the position of the company within the selected price
strategy; form a favorable image of the enterprise market. Monitoring prices of
competitors made the following stages: identifying actual and potential competitors;
study goals of the competition; analysis of the consequences that pricing decisions are
determined by the competitors; estimate the price elasticity of demand for the
products of competitors; mutual research competitors' prices; analysis of possible
ways of changing prices of competitors on the basis of assessment of income
elasticity of demand; assessment of value for money of competitors; study of price
competition in terms of product groups; study the reaction of competitors to changes
in market prices; Analysis of pricing for new products competitors
Conclusion. Thus, the formation of price policy must take into account the
peculiarities of a strategic approach to pricing. A clear definition of the relativity of
being price strategy enables appropriate to divide its functions with pricing tactics in
the system of pricing policies in order to obtain the planned profit margins and more
effectively influence the sales in a competitive market. This should take into account
the specifics of the company long-term permanent changes in conditions con ".ktury
market. First of all, it should be based on the principles recommended by the pricing
policy, then decide what goals the company is trying to achieve with a particular
product and what clearer idea of them the easier set price. In addition, it is important
to accompany this whole process grounded timely management decisions and ensure
control over their execution as well as the implementation of pricing policies.
The problems that remain unresolved and require further theoretical
development: study of pricing methods with a focus on matching demand and prices
of other elements of the marketing mix, the development of monitoring competitors'
prices and price adjustment system as a necessary condition to make informed
decisions on price undertaking.
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