Study On Pricing Strategy Based On Customer Segmentation And Competiton

Pricing strategy plays a very crucial role in modern marketing practice, because price not only directly determines the size of business, but also has a direct impact on the level of profits. However, the furious competition and versatile customer needs make it difficult for M company to generate growth, mainly caused by price decision in a simple way. This study attempts to establish pricing strategy based on customer segmentation and price competition in order to achieve profitable growth.The process of our approach is: analyze internal and external environment firstly, and then tell the exact reasons for the business difficulty; cluster customers into different segmentation based on market research, and then build up a quantity-based discount pricing structure on par with customers' price anticipation; count market competition as the price basics under a new price management system. The expectation after the new pricing strategy is to boost sales growth(without any profit loss), and enhance price competitiveness. The sales data and questionnaire survey after implementation are collected and analyzed to assess the performance of the proposed approach.This article had a thorough analysis on the determining factors of pricing decisions. Taking M company as a case study, it's proposed to how to develop a price structure based on customer segmentation, and how to give a prompt response to the market competition under an effective price management system. This study on pricing strategy has given a strong support to M company's realistic operation, and has a certain theoretical and practical reference in the research on price decision.