Some product categories tend to self destruct themselves by always being on sale . Quick discounts often given by the salesperson to close a sale . This gives not a very favourable image of the company. Customers think that the company's list price is SOFT, and discounting becomes the norm.
THE DISCOUNT UNDERMINE THE VALUE PERCEPTION OF THE OFFERINGS.
Companies use several pricing techniques to stimulate early purchase. Promotional pricing strategies are often ZERO-SUM GAME. If they work competitors copy them and they lose their effectiveness. If they do not work then they waste money that could have been put into other marketing tools .
Three Conditions For Determining the success of differentiation
Companies must not use differentiation tactics in isolation
Companies must be able to persuade consumers to pay for added benefits
Companies must bring costs and benefits in line.
SOME FEATURES ARE
1.Design cool products
3.Offer unique product mix
4.Brand a community
LEGAL ASPECTS AND ETHICS OF PRICING Controlling market in terms of product quality or advertising, by engaging in pricing practices that can unfairly reduce competition or harm consumers directly, through fraud and deception .