In the market for goods and services, there is a division into price segments depending on the cost of products, their functionality and characteristics, as well as the requirements of buyers for goods of a certain class.
What is the price segment
The price segment of a product is determined by its cost and characteristics. Timely price positioning, as well as regular market monitoring, allow us to implement the most effective marketing activities 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 programs in each individual case, helping to increase turnover and attract the attention of buyers.
There are four price segments on the world market. Economy offer is the so-called low price segment, which attracts the bulk of buyers with low cost of products. In the economy, this segment is referred to as low-priced.
The middle or middle-priced segment includes higher quality products at a higher price.
High price segment - high-priced represents expensive high quality goods. And finally, the premium segment, or luxury, is the best that the market has to offer.
low-priced
The cost of goods in the low price segment is much lower than the average market price for similar products. Such products have only a set of basic characteristics, that is, there are no various additional features. The buyer does not expect any exceptional properties from such products. Most often, the consumer is tuned in to the short-term operation of the products of this segment, realizing that the product is of poor quality.
M iddle-priced
The price of the product corresponds approximately to the average market price. Most of the products have additional features and advanced functionality. Many global companies are focused on the production of such products because they have a high differentiation.
High-priced
The products must have a wide functionality and fully comply with the stated promises. In addition, there are heightened customer expectations for quality, service and service. The cost of products in this price segment is significantly higher than the average.
Luxury
These are fashion products that emphasize the position in society and the well-being of the owner. The cost of products is quite high and the requirement of an individual approach is added to the customer's wishes for quality and functionality. This category often includes branded products produced in limited quantities.
