ASPECTS OF TOTAL QUALITY MANAGEMENT APPLIED IN ...

Annals of the University “Constantin Brâncuşi”of Tg-Jiu, No. 1/2008, Volume 2,
ISSN: 1842-4856
DEVELOPING A PRICE STRATEGY WITHIN RETAIL TRADE
MARIUS BĂLĂŞESCU,
Transilvania University of Braşov,Romania
ABSTRACT
The present work has in view:
- Describing the part played by prices in retail strategy and the importance of price decisions, decisions that must be
adjustable and complete.
- Inquiring the impact of consumers, government, producers, wholesalers, and other suppliers, effective and
potential competitors, on price establishing decisions. Retailers must know all factors that influence price
decisions, as well as the elasticity of demand, and possible market shares. The government affects prices at three
levels: federally, stately and locally. Price control may generate conflicts. Producers, wholesalers and other
suppliers may be asked for guarantees (if their position is not very fortunate). Competitive environment may
determine prices to increase, and may even generate a price war.
- Describing the environment of developing a price strategy within retail trade. This environment has five stages:
goals; price policies; price strategies; price strategy implementation and price adjustment.
The goals that are to be achieved by the means of prices are: sales increase, profit increase, return on investment
and quick depreciation. A good price strategy incorporates demand, costs and competitive concepts. Retailers must
know when to use customary or variable prices, when to use low price policies and variable price policies, leader
prices, multiple - unit prices, and when to range prices. Price adjustment is required for adaptation to internal and
external conditions. It includes price reductions or higher additions. It is very important for the adjustment to be
controlled by a budget in order to avoid excessive discounts, to measure the adjustments in time, and to write down
reduction causes.
1. Introduction
The work approaches the price establishing issue within retail trade, especially in American
economy.
As shown in the following figure, a price strategy in retail trade includes five stages: retail trade
goals, price policies, price strategies, price strategy implementation and price adjustment.
Retail trade
goals
Price
policies
Price
strategies
Price strategy
implementation
Price
adjustment
Factors that influence price strategy in retail trade