How to develop "Target Pricing Models" for negotiation strategy, and much more?

Can be developing "Target Pricing Models" for negotiation strategy, through a following : Wherever company studied the competition and customer to determine the point at which the product must then be competitor pricing. When he should be required to define the target price for the company to see a profit and then work through the return on the cost that must be incurred product calculation to find the profitability of the target price. These calculations must take into account the target profit margin, and lower the price to retailers, and future distribution costs and saves costs. Pricing Strategies Pricing strategy determining the price factor in application of marketing strategies. are putting What is the status you want to for the company reach it by putting determined price. Pricing strategy is not necessarily to be overstated. Must be determined for each group of the company's marketing strategy and must be compatible with the availability and distribution strategies. Pricing models ★ Executive pricing model: low price increases the demand for the product. Is used in the following cases: ● show in low-cost increase. ● When the market growth or increased demand for the company's products. ● when company sells integrated products with high profit margins with low-priced products. ● When the company enjoys economic progress. ● When the high cost structure of competitors. ★ Equivalently pricing model: is the use of the asymptotic rate of price competition and other necessary for the implementation of marketing strategies data. Is used in the following cases: ● when the total size of the market does not grow with low prices. ● When competitors can absorb any reduction in prices. ★ Encouragingly pricing model: the price is higher price levels of competitors. Is used in the following cases: ● When a company can disperse their products from other products in terms of quality or certain attributes. ● When a company has super abilities where it is difficult for competitors enter the industry.

It would be depend on Purchasing Power or ability of the country people.

target pricing

a pricing method that involves (1) identifying the price at which a product will be competitive in the marketplace, (2) defining the desired profit to be made on the product, and (3) computing the target cost for the product by subtracting the desired profit from the competitive market price. The formula

Target Price - Desired Profit = Target Cost

Target cost is then given to the engineers and product designers, who use it as the maximum cost to be incurred for the materials and other resources needed to design and manufacture the product. It is their responsibility to create the product at or below its target cost.

Agree with the answer given by Vinod Jetley  

Agreed with colleagues answers

1. Measuring customer elasticity of demand for the product/service

2. Relationship between price and market share within various macroeconomic environments

3. The size of the business