2.2.2 Price GapFill

When a business becomes established it may want to reconsider the pricing   tactics strategies plans policies that it uses and this will depend on the strength of the brand and how  dynamic impulsive changing strong the market is. 

There are many influences on which pricing strategy is chosen.  For example a change in   science physicstechnology chemicals may mean that new production equipment or processes have become available.  This may make the business more cost efficient and can mean that they enjoy economies of  scale shell measure plate  and lower average costs.  These lower costs means that these savings can be passed onto the customer as lower prices, therefore boosting sales. 

Another strong influence on the pricing strategy used is the stage of the product  lifecycle cycle life   life circle bicycle  that the product is at.  For example if a product is cutting edge technology and is an anticipated release then the business may charge high prices at the launch or   debut next introduction founding  of the product in order to aim at the lucrative higher income markets and customers who are eager to have the new tech first e.g. New XBox or PlayStation games.  In contrast when a product enters the  decline reject drop turn down  stage the business may heavily discount the product in order to clear out the old stocks. 

In addition the market   separate segment part divide  that the business trades in may influence the prices that are charged.   Mass Bulk Pile People market goods tend to be similar to other products and so the business may charge low prices to encourage sales. In contrast if the product appeals to a   smaller niche obscurespeciality market and is unique then the business may be able to charge higher prices for the products, potentially making higher profit margins.