What is the price range
Price segment of the product is determined by its value and characteristics. Timely price positioning, and regular monitoring of the market allows to implement the most effective marketing activities that are aimed at increasing the popularity of products of various types, from the lowest to the highest price category. Therefore, market segmentation is necessary to determine the most effective in each individual case of programmes that promote trade and to attract the attention of buyers.
On the world market, there are four price segments. Budget proposal – the so-called low price segment, attracting the bulk of buyers of low cost products. In Economics, this segment is designated as low-priced.
Mid-market or middle-priced includes products of higher quality at a higher price.
High price segment is high-priced is expensive high quality goods. And finally, the segment of premium, or luxury, the best that the market can offer.
The value of the goods of low price segment is much lower than the average market prices for such products. Such goods have only a set of basic characteristics, there are various additional possibilities exist. The buyer doesn't expect from such products any exceptional properties. Most often, the consumer is configured to short the exploitation of the products of this segment, knowing that the product is of poor quality.
The price of the product approximately corresponds to the average. Most of the products has additional features and advanced functionality. Many companies worldwide focused on the production of such products because it has high differentiation.
Products must have a functional and fully comply with the stated promises. In addition, there are increased expectations of buyers to quality, service and maintenance. The value of the products in this price range is significantly above average.
This is the image production that emphasizes position in society and wealth of the owner. The cost of production is quite high and to the customer's wishes for quality and functionality is added to the requirement of individual approach. In this category, often represented branded products, produced in limited quantities.