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Analysis report on the effect of drug price reduction
I hope it helps you. Price is the monetary embodiment of the value of consumer goods and the most active factor in the marketing mix. Many problems in our daily sales are closely related to the price of products: jumping goods, smashing prices, no profit, shortage of market expenses, poor product sales and so on. In marketing activities, price reduction always seems logical, with fewer twists and turns, while price increase always seems to go against the trend, with few successful cases. Therefore, it is particularly important to formulate a relatively balanced and forward-looking product price. From my years of marketing experience, the strategy can be relatively flexible, but the price system of products should be relatively stable, which is conducive to sales, that is, price rigidity and strategic flexibility. In order to better adapt the product price to the objective needs of the market and enterprises, we analyzed the product pricing strategy and the factors that need to be considered to guide the marketing personnel who are sensitive to the product price. 1. At the beginning of product pricing, we must weigh the strategic attributes of the product and the market position of the product after listing. If it belongs to the main product, the requirements are relatively high, which not only ensures the market competitiveness of the product, but also accumulates strategic reserves for the subsequent development of the enterprise. It is a fist product with both market and profit. If it is a supplementary product, it should reflect the value of the supplementary product line, not only reflect the enterprise interests of the product, but also become an aggressive product at any time when the market competition is fierce. For side or strategic offensive products, it is necessary to ensure that the products are very aggressive in price. 2. According to the quality characteristics and market demand of products, calculate the demand table and demand curve of products, and fully refer to the products, costs and price strategies of competitors. For innovative and monopolistic products, skimming and high-priced strategies can be advocated according to the characteristics of the products, and this strategy can also be properly considered for products with greater competitiveness. For products with particularly serious market homogenization or even following the trend, we must make full reference to the prices of market substitutes and competitive products to set product prices. At the same time, when pricing products, we must conduct professional market research, look at the market reality and potential demand of products, competitors' product characteristics, costs, prices and other variables, and outline the market demand curve of products for reference pricing. The market demand is large and the products are competitive, so the pricing can be relatively high, otherwise it needs to be lower. 3. According to the product positioning of the target consumers and the brand price of the enterprise itself, give the product the price strategy under USP strategy, and give the product its own unique selling point and added value. Product pricing is often accompanied by the analysis of consumer behavior and purchasing power. If the product is positioned as a high-end crowd, high quality and high price are inevitable. If it is positioned as a mass crowd, good quality and low price are the core. At the same time, the price of products is closely related to the added value of corporate brands and brand personality. Haier TV is more expensive than Changhong, Lenovo computer is cheaper than Dell, and brand added value plays a key role. Even many products are in one enterprise. Therefore, when pricing their own products, enterprises must comprehensively weigh these factors and formulate their own actual product prices. 4. Comprehensive application of cost orientation and profit target method. At the beginning of the listing of enterprise products, actuarial method should be used to calculate the cost index of products. It is necessary to analyze not only the static cost of products, but also the variable cost, because with the increase of sales volume and the improvement of production efficiency, production costs will further reduce production costs and expenses. If the goal of new products is to replace some existing products in the market, enterprises need to set target costs to make new products meet the requirements of target prices and be competitive in the market. Whether in the overall product structure or in a single product, enterprises have established overall plans and strategies. For different industries, there are also tolerable profit ranges, so it is very realistic for enterprises to determine the price of products according to the expected sales revenue and sales volume. According to the fixed cost, variable cost and expected sales volume of the enterprise, the price of the product is calculated: unit price = fixed cost/sales volume+variable cost. This can make the enterprise's goals more clear, and it is also convenient to calculate the estimated values of various marketing indicators according to the profit target and expected sales volume according to the break-even diagram. In practice, many enterprises adopt this pricing method, especially for manufactured products or products with large investment in fixed assets. 5. Fully consider the market position and competitive situation of the product market, and formulate a long-term price system under specific marketing strategies. Many enterprises have very simple means and tools to implement prices, which leads to unreasonable prices of products in the market, chaotic and unsystematic sales prices. Once the product sells well, it will be flooded and difficult to control, which will directly shorten the life cycle of the product. Therefore, I think that in today's increasingly convenient transportation and more developed logistics system, designing the price system between different regional markets of products is even related to the survival and development of products and even enterprises. Whether it is a strategic regional market, a new market or an infiltration market, the prices should be relatively close and there should be reasonable profit space, so that the strategy of intensive cultivation of the market can become a lean reality. As for the means of market competition in different stages of development, the author thinks that we should not only use price as a weapon, but also use strategy as a flexible weapon to participate in the price war and even the channel war of competing products. 6. With the drastic changes in the market situation, the continuous progress of society, the rising prices of raw materials and operating expenses, the pricing behavior of enterprises must not be rigid. Therefore, when pricing products, enterprises should have certain predictability and market fluctuation tolerance, neither too high, which will affect the market development of products, nor too low, which can not bear the increase of market development expenses and costs. Many enterprises will consider and implement product price reduction when the production capacity is greatly increased, the cost is upside down, or the economy is depressed and the market share of enterprises is reduced. Many cases have proved the possibility of success. However, the price increase behavior is not so lucky. In the face of inflation, rising prices and rising operating expenses of enterprises will force enterprises to raise product prices to ensure profits. This means that enterprises must estimate the impact of price increase on customer demand, how competitors will react and whether the operation of channels will be affected. They should try their best to combine the price increase with the use of strategy, and try their best to avoid the impact of price increase or excessive price increase on the business confidence of the channel, which will lead to a sharp drop in customer demand, so that not only the profit target can not be achieved, but even the original share can not be maintained. Of course, when products are in short supply and cannot meet the needs of all customers, it is another matter for enterprises to raise prices moderately. However, when the product is in short supply, the price increase will lead to the physiological deficiency of product loyalty, that is, the nihilism of perceptual vacuum. Once the substitute of the product appears, it will greatly lose its existing share. Therefore, the author advocates the cautious use of price increases, and there are many methods used. Not all price increases are aimed at raising the basic price of commodities, but they can also be achieved by reducing discounts, reducing certain services or free charges, adding high-priced items or reducing low-priced items in a series of products. There are many pricing strategies for products, and many theories are systematic and standardized. Therefore, when setting prices, enterprises must formulate their own pricing strategies according to their own actual conditions, rather than mechanically copying certain theories and models.