Abstract

CORDOBA SEGOVIA, Carlos Manuel¹  and  MORENO MONCAYO, David Felipe². THE IMPORTANCE OF A GOOD PRICING STRATEGY AS A TOOL OF MARKET PENETRATION. Tend. [online]. 2017, vol.18, n.2, pp.58-68. ISSN 0124-8693.  https://doi.org/10.22267/rtend.171802.73.

For a company to be at the forefront of its rivals, with high value-added goods and services as well as a significant expertise, must require a well-thought-out pricing strategy that is attractive to the client and profitable to the company. This objective can be achieved through financial optimization strategies focused on detail knowledge of cost structure that allow the increase in market share with competitive prices. This article shows how different cost and pricing strategies that are related with the nature of each company can be used to compete efficiently in the global market. Although in practice there is no ideal formula for pricing, the right strategy will be the one that best suits the goal that the company wants to achieve at a given time. The purpose of this essay is to expose to the reader the pricing strategies commonly used in the market, in order to demonstrate their impact on the financial results of companies and to suggest alternatives for management decision making.

Keywords : Pricing; cost structure; competitiveness.

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