Jinan Iron And Steel Group Corporation, Iron And Steel Products Pricing Strategy

Price has operated as the major determinant of buyer choice, and although non-price factors have become more important in buyer behavior in recent decades. Price still remains one of the most important in buyer determining company market share and profitability. Price is the only element in the marketing mix that produces revenue, and the other elements produce costs. Price is also one of the marketing mix, in that it can he changed quickly, unlike product features and channel commitments. At the same time, pricing and price competition are the number-one problems facing many marketing executives. Yet many companies do not handle pricing well. The most common mistakes are these:1. Pricing is too cost-oriented.2. Pricing is not revised often enough to capitalized on market changes.3. Pricing is set independent of the rest of marketing mix rather than as an intrinsic element of market-positioning strategy.4. Price is not varied enough for different product items, market segments, and purchase occasions.Pricing is a key factor in industries. By searching into the actually market and other cases, some useful recommendations are provided to Jinan Iron & Steel Group General Company (JISGGC) in this paper. The conclusion is that J1SGGC must quickly respond the changes of the market by making decisions speed i ly. A pricing department should be es tablished to set prices or assist others in determining appropriate price. This department reports to either the marketing department, the finance department and top manager.