PRICING STRATEGIES OF THE ENTERPRISE: ESSENCE, TYPES, PROBLEMS OF FORMATION

Abstract

The article is devoted to the study of the concept of «price strategy» and the importance of its correct choice for enterprises. Features of winning and losing strategies were given. The main stages of choosing a price strategy have been formed. The eight most popular pricing strategies, their advantages and disadvantages were characterized. Several examples of successful application of the price strategy were given. The importance of marketing to a business is huge. It informs customers about a company's products or services and helps them to make a purchase decision. In addition, an effective marketing plan helps to create and maintain demand, reputation and competitiveness of company’s products. Therefore, since marketing plays a key role in making any business successful, without understanding how important marketing is, it can be very difficult to run and manage a profitable business nowadays. As marketing is the engine of business, the 4P model occupied an important place in marketing. The purpose of this marketing model, or marketing complex, is to control key aspects of the company's activities. And as a result, get a quality product, which will be successful in the market. These 4 aspects - Product, Price, Place and Promotion - are the starting points of marketing for business growth. They should be taken into account at the stage of development and release of a product or service to the market, as they significantly affect marketing performance. Price is one of the most important components of the 4P model, which has a huge impact on the behavior of a potential consumer. Most companies do not pay due attention to the pricing strategy, although if the strategy is chosen correctly, the company will be able to reduce costs, increase revenue, increase brand recognition and win the battle for the consumer. Not so far ago, the decision on prices was made within the framework of a purely financial approach, that is, the price was determined mainly from the standpoint of costs and profitability. High inflation, rising prices for raw materials, rising interest rates, price control by the state, intensifying competition, declining consumer demand, consumerism – all these factors strengthened the strategic role of pricing. The role of price in the marketing activities of the enterprise is difficult to overrate. The price directly affects the company's financial performance, consumer perception of its brands and their positioning in terms of the consumer value offered. Price forms profit and market share, and is also an indicator of product quality.