Competitive pricing is an area that has been constantly worked upon to formulate a proactive optimal pricing strategy in an increasingly dynamic market environment. Adjusting to the optimal pricing is an essential part of a business strategy, as it is one of the key value levers with too many viable alternatives for consumers to choose from. Thus, without careful monitoring of demand and supply cycles, along with taking some macro and microeconomic factors into perspective, there is a huge risk of experiencing errors in product pricing.
Pricing errors can lead to confusion and increases the propensity of end consumers to look for other viable options. Thus, organizations are increasingly choosing to define their pricing strategy mainly across three different options:
- Product or channel centric,
- Omni-channel or shopper centric,
- Time-centric hybrid pricing strategy
Understanding the consumer behavioral pattern is essential to ascertain an optimal strategy. As more and more businesses are choosing to out-perform their competitors, it is essential that marketers have a coherent insight of the dynamic pricing of wide array of products on offer by the competitors. Thus, retailers are increasingly leveraging the pricing optimization solutions, to adapt to dynamic pricing strategies essential for competing in the highly competitive digital marketplace.
Conclusion: With a plethora of available alternatives for almost all products and services in current business scenario, there is a limit to the number of prices a consumer can memorize for comparison. However, increasing use of smartphones have empowered consumers to carry this information with them, while it may not be practical for a marketer to track the same for all their offerings in real-time, using traditional pricing techniques. Thus, advanced predictive analytics-based pricing optimization tools, can enable marketers to tap into the modern business dynamics and thereby overhaul their existing pricing strategy and capabilities. Prisync, Blue Yonder (JDA company) and Omnia Retail are some of the innovative vendors offering unique pricing optimization solutions. Using these offering marketing heads can now ascertain ideal pricing for their offerings with available price recommendations that are relevant to the existing market dynamics.
– Shiladitya Chaterji,
Senior Analyst– ICT,