PRICING POLICY and MARKETING STRATEGIES as a PART of COMPETITIVE ADVANTAGE of RETAILS STORES in the SLOVAK REPUBLIC - Polish Journal of Management Studies

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PRICING POLICY and MARKETING STRATEGIES as a PART of COMPETITIVE ADVANTAGE of RETAILS STORES in the SLOVAK REPUBLIC

Abstracts > Vol 8

PRICING POLICY AND MARKETING STRATEGIES AS A PART OF COMPETITIVE ADVANTAGE OF RETAILS STORES IN THE SLOVAK REPUBLIC
Gburová J., Štefko R., Bačík R.


Abstract:  The paper deals with price and marketing pricing strategies of retail chain stores in the Slovak Republic. The aim of this paper is to highlight the perception of the impact of economic recession in the retail chain stores. To determine the most used marketing pricing strategies has been used analysis of variance ANOVA. The global finance crisis does not have influence to selection and implementation of pricing strategy, which is used by branches of chain stores marketing management of in area of Presov region .  

Key words:
price, pricing strategies, marketing, chair stores

Introduction

Pricing is becoming an integral part of daily management of sales and marketing chains worldwide. Pricing and its increasing or decreasing is currently confronted with the state of the economy, but also the expansion of trade over the Internet.
According to Foret [5] the price presents in marketing term "amount of money, the volume of products or services that the buyer is willing to give the seller as consideration for the right to use a particular product or service."
Price is the only one element of the marketing mix, which is a source of income. Other elements produce only costs. It is also one of the most flexible elements of the marketing mix. In contrast to the properties of the products and commitments to the distributor is it possible to change it rapidly. Price decisions do not accept isolation. They always have to be in accordance with the micro environment and macro environment business [3].
Today, companies have to face a constant change in the prices of its competitors. The strategy often depends on whether the firm produces homogeneous or heterogeneous products. Market leadership can companies gain especially in the way of providing lower prices than its competitors [7]. The price plays an important role in trading strategy. Prices vary according to the objectives, company priorities and other situational factors such as the intensity of competition and economic conditions and therefore they can address different objectives. Legal and ethical issues related to prices play in selecting pricing strategies a crucial issue [2]. Today, organizations approach pricing in various ways. The owner is pricing in small enterprises. Manager of division or product lines is usually pricing in bigger enterprises. But even in these cases, top management sets out the general objectives and principles of pricing policy [1]. Pricing is a science where a discipline of marketing, cost accounting, business strategy and economics converge [4].             For selecting final price managers should be have information about pricing objective, demand curve, probable quantities it will sell at each possible price and competitors' costs, prices and offers. Marketing managers have to estimate how its costs vary at different levels of output, at different levels of accumulated production experience and for differentiated marketing offers. Then they select a pricing method and final price that could be establish like:
1. Overprice – lose a sale that would have been profitable at a lower price,
2. Underprice – make an unprofitable sale or
3. Price appropriately – make a sale and make a profit.
According to Jedlička [6] it is necessary to understand, which crucial roles carry the price on the market and from that derive a target orientation of price strategy as broader and fuller understanding than a price which forms only particular item. The price serves on the market as:

  • communicator between supply and demand (between consumer and entrepreneur), to reflect the economic positions of both sides of market communication.

  • quantifier to determine the amount of a particular exchange value of the goods in the chosen monetary or non-monetary unit in order to facilitate business relationships on the market.

  • qualifier to determine the overall utility of the product (compared to the other comparable products), while respecting the other quality parameters (trade, fashion, etc.) that are incorporated in the expressed price level.


When pricing policy is creating, the company must consider many factors. Six steps of pricing objectives/pricing methods [8]:
1. Selecting the pricing objective
2. Determining the method demand and estimating costs
3. Analyzing competitors costs, prices, offers
4. Selecting a pricing method and selecting the final price.

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Summary

The chain stores (as big business subjects which own and operate great number of shops) in Slovak republic constitute the business network, which is dense enough and is easily available for all customers. By the implementation of their business policy they significantly change and influence the classical business structure. By the fact that they buy goods directly from the manufacturer, they omit the wholesaler and represent the competitor not only on the retail market but also on the wholesale market [9].
The paper presents the results of survey that was conducted in Presov region in 107 branches of chain stores. The participant asked to applying marketing pricing strategies and price adjustments strategies. The most used is main competition pricing strategy, promotional pricing strategy and discount pricing strategy. Many factor come into play in determining price, specifically customers, costs and competition. The marketing managers select final price and need to change prices too. There resonates a question of the need for change in connection with the obtained results to determinate marketing pricing strategies in retail chain stores depending on the offered assortment by retail chain stores in the Prešov region. It is mainly based on the customary assumption of finding, that the uniformity of marketing pricing strategies determination is not sufficient and competitive enough in retail chain stores operating in the Prešov region.

References

[1]. Bartáková G. et al. Základy marketing. Bratislava: 228 s.r.o., 2007. 279 p.
[2]. Cravens D. W., Piercy, N. F. Strategic marketing. New York, 2009. p. 369.
[3]. Cibáková V., Bartáková G. Základy marketingu. Bratislava: Iura Edition, 2007.             279 p.
[4]. Daly J. L. Pricing for profitability: activity – based pricing for competitive advantage. Wiley, 2002. 271 p.
[5]. Foret M., Prochádzka P., Urbánek T. Marketing – základy a princípy. Brno: Computer Press, 2003. 193 p.
[6]. Jedlička M. Marketingový strategický manažment. Tranava: MAGNA, 2003. 365 p.
[7]. Kotler P. et al. Marketing management. London, 2009. p. 607
[8]. Kotler P., Keller K. L. Marketing management. Praha: Grada Publishing, a.s., 2007. 792 p.
[9]. Štefko R., Gburová J., Jurková J. Some aspect of pricing strategies in marketing of the branches of chain stores in Slovak republic. In Global Trend in Finance. The First On-line International Conference. ASERS : 2011, p. 82 - 88.


POLITYKA CENOWA I STRATEGIE MARKETINGOWE JAKO CZĘŚĆ PRZEWAGI KONKURENCYJNEJ SKLEPÓW DETALICZNYCH W REPUBLICE SŁOWACJI

Streszczenie:

Artykuł ten zajmuje się strategiami cenowymi i marketingowymi sieci sklepów detalicznych w Republice Słowackiej. Celem niniejszego artykułu jest zwrócenie uwagi na postrzeganie wpływu recesji gospodarczej w sklepach sieci detalicznej. Do określenie najczęściej używanych strategii cenowych, wykorzystana została analiza wariancji ANOVA. Globalny kryzys finansowy nie ma wpływu na wybór i realizację strategii cenowej, która jest wykorzystywana departament marketingu sieci sklepów detalicznych w regionie Preszowa.

Słowa kluczowe: cena, strategie cenowe, marketing, łańcuch sklepów

定價政策及營銷策略零售門店在斯洛伐克共和國:競爭優勢的部分

摘要:論述了零售連鎖店在斯洛伐克共和國的價格和市場定價策略。本文的目的是要突出經濟衰退的零售連鎖店的影響的看法。為了確定最常用的營銷定價策略已用於方差方差分析。全球金融危機並沒有影響到選擇和實施定價策略,這是由連鎖店銷售的普雷紹夫地區的區域管理的分支機構。
關鍵詞:價格,價格策略,市場營銷,椅專賣店


 
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