FEATURES AND PSYCHOLOGY OF BRANDS PRICING: MARKETING ASPECT

Abstract

With the aim of providing the enterprise’s profitability there is an actual problem of searching the effective marketing technologies that would promote the value of commodity for consumers. It is important to point effort at brand capitalization, using totality of marketing instruments; one of basic aspect is price. The essence of brand pricing and brand value as an important constituent of price politics taking into account the marketing and expense approach to pricing is considered in the article. Essence of brands pricing, main purposes of the enterprises, that produce brands, their varieties and methods of achievement, is considered. The row of key factors that directly influence on brand cost and its value for consumers is set. The basic approaches to the process of forming the price of branded commodity, their strengths and weaknesses is proved. The basic differences of brands pricing from ordinary trademarks, the basic constituents of successful brand, their structure, role and influence, are analyzed on the consumers’ decision are established. The value of brand equity, its description, advantage of brand possessing, and also influence on pricing on the whole is investigated. The basic categories of brands depending on price and quality of commodity, their value for consumers were determined. The process of price setting on the branded commodity that consists of some basic stages they are: determination of commodity cost taking into account the charges on producing goods and minimum mark-up; prices coregulation to the standard of prices of commodities-analogues from firms-competitors; determination of size of extra charge for unique trade suggestion, that commodity contains; determination of extra charge for marketing possibilities of company and degree of possessing the channels of distribution; adding to the price a certain price bonus for a brand. The types of strategies that are used for brand pricing taking into account the selected method of its positioning at the market and aims of pricing are established: strategy of skimming; strategy of cost penetration; strategy of stable prices; strategy of price discrimination; strategy of price leadership and others, and also their descriptions and separate features are considered. The influence of such factor as loyalty of consumers on forming the branded cost of commodity is shown. Psychological methods that are needed to be used for forming and adjustment of brand price that will give an opportunity to promote profitability of enterprise activity, retain and fix market positions of the enterprise and its brands are generalized.