ENHANCING THE ENTERPRISE PRICING STRATEGY MANAGEMENT

Iryna M. Miahkykh, Mariana S. Shkoda, Oleksandr М. Peresypko

Abstract


The fundamental objectives of this study is to provide insights to the “pricing policy” concept, to explore the factors that affect pricing of commercial products, as well as to develop recommendations to enhance the company's strategic management in the area of its pricing policy. To attain the above objectives, the following research methods have been employed: system analysis and logical generalization – to improve the framework for the enterprise pricing strategy management optimization; a substrate approach – to justify and group the internal and external factors affecting the pricing policy. It is noted that while estimating the price for products, the company seeks to obtain the desired profit, both in the short run, and for the future, in the long term to ensure their competitiveness. Thus, within a pricing policy it is critical to maintain the permanent process of selection and comparison of an acceptable ratio between the product output and its price subject to the market. However, mere competitors’ price monitoring or price comparing and adjustments, are not yet sufficient for achieving business success. While shaping the pricing policies and adjusting prices, a company should focus on consumer purchasing power, since the market factor plays a key role in pricing. Moreover, for many enterprises price is the major tool for managing supply and demand. It is also very important that these methods are applied synchronously, which will enable the company to set relevant prices and make products competitive through pricing quality management policies. Since the cost accounting method refers to the costs associated with product manufacturing and sales, respectively, the target costs are recorded, whereas the market approach facilitates businesses to assess the current situation in the market. In the strategy of managing pricing policies, it is necessary to seeing the importance of the relationship and correlation between the sales strategy and the marketing concept of the enterprise. Another significant finding of the study in the context of pricing strategy management is the need to consider the relationships and correlation between a sales strategy and the company marketing concept. Thus, while designing pricing strategies, first of all, it is critical to focus on setting the relevant price level that will contribute to maximizing the total company profit under limitrophe regulation of its business activities in a competitive environment, as well as to develop the optimal pricing policy and select a particular management strategy in line with specific company goals and activities.


Keywords


pricing strategy; pricing strategy structure; competitive advantages; internal factors; external factors

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DOI: https://doi.org/10.30857/2413-0117.2019.4.9

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