What are the pricing strategies for green products? -Green Marketing _ Green Marketing Knowledge-Platform for Marketing Learning and Communication _ Marketing China

when enterprises engage in green marketing, they should adopt corresponding pricing strategies according to the consumer demand, product cost, competition and other factors in the target market and their changing trends, so as to adapt to the marketing objectives of enterprises. I. New Product Pricing Strategy When an enterprise launches a new product, it will definitely consider pricing the product, which is an important link in the process of new product development. Whether the price strategy is correct or not is related to the success of new product listing, and it is an important decision-making content of product promotion. New product pricing strategies are generally divided into skimming pricing, penetration pricing and satisfactory pricing. Skimming pricing refers to selling new products at the highest possible price as soon as they are put into the market, so as to earn profits quickly and recover investment. Penetration pricing is just the opposite of skimming pricing, which means that new products are sold at a lower price when they are put into the market, and strive to obtain as much sales volume and a larger market share as possible in order to occupy the market as soon as possible. Satisfactory pricing is a moderate pricing method between skimming pricing and penetration pricing. Green products can be regarded as new products. When a green product enters the market for the first time, or enters a new market for the first time, or a green product developed by an enterprise through technological innovation can be regarded as a new product. Green products can also adopt skimming pricing, penetration pricing and satisfactory pricing according to the situation. (1) skimming pricing strategy for green products This method refers to adopting the highest possible price strategy when green products are put into the market, so as to recover the green cost as soon as possible and obtain corresponding profits. The applicable conditions of this pricing strategy are: first, the product has distinctive green characteristics. For example, if an enterprise develops non-toxic, harmless, safe, healthy and natural green products through technical research, it can emphasize its distinctive green characteristics; Secondly, it is facing a market with strong green consumption consciousness and is not sensitive to price; thirdly, the patent protection of its green process is the most favorable condition for the implementation of skimming pricing strategy. (II) Penetration pricing strategy for green products When green products are put into the market, penetration pricing strategy can also be adopted, that is, attracting more customers and increasing market share at a relatively low price. The applicable conditions of this pricing strategy are as follows: first, there are many potential customers and a large market for this green product, and this potential demand will be transformed into real demand with the cultivation of the green market; Second, the production cost and operating expenses of this product of green enterprises will decrease with the accumulation of production and operation experience, that is, the Cost-effect)； can be achieved; Third, with the increase of sales volume and the expansion of market share, the cost per unit product will decrease, that is, economies of scale will be achieved; Fourthly, the market demand of green products with osmotic pricing is generally sensitive to price, and low price can stimulate purchase and arouse the awareness of green consumption. In this sense, osmotic pricing is like long-term investment. Only after the green market is fully formed can the green investment be recovered and the corresponding profits be obtained. Fifth, penetration pricing should have a better competitive environment, that is, low prices will not cause the threat of intensified competition. Second, the green product portfolio pricing strategy The so-called product portfolio refers to the combination of all product lines and product items produced or sold by an enterprise. The so-called product line refers to a group of closely related products, also known as product series or product categories. Product items refer to products with different models, specifications, styles and colors under the same product line or product series. In green marketing, in order to reduce resource waste and improve resource utilization, comprehensive utilization of resources should be implemented. For natural resources with multiple uses, such as raw ore and associated ore in mineral resources, comprehensive development and comprehensive processing are needed, and it is impossible to develop a single resource and discard other resources as waste. At the same time, we should also make use of the waste discharged from the environment in production and life, improve the recycling and comprehensive utilization rate of waste materials, and turn waste into treasure. This inevitably requires enterprises to change the product structure, that is, product mix. This is consistent with the requirement of sustainable development to establish a product structure that is compatible with a reasonable consumption structure. The change of product structure requires enterprises to implement green product portfolio pricing strategy. Traditional product portfolio pricing includes two kinds: product line pricing and single price pricing. Product line pricing strategy: when pricing the product line produced by enterprises with the internal correlation between demand and cost, first determine a lowest price, which will serve as the leader price in the product line to attract consumers to buy other products in the product line; Secondly, determine the highest price of a product in the product line, which plays the role of brand quality and investment recovery in the product line; Furthermore, other products in the product line set different prices according to their different roles in the product line. Single-price pricing strategy refers to that when an enterprise sells many kinds of goods with little difference in cost, in order to facilitate customer selection and the needs of internal management, all products sold by the enterprise implement a single price. The green product portfolio pricing strategy is different from the traditional product portfolio pricing strategy. Green product portfolio pricing strategy is a strategy to implement pricing according to the internal relationship among the demand, production cost and utilization of production resources of green products. Generally speaking, green products with strong demand, such as healthy, safe, non-toxic and harmless products, are set at relatively high prices, while products formed by recycling waste generated in the process of producing products that meet the demand are implemented at low prices or even below the cost. It can be seen that the pricing strategy of green product portfolio is actually to play the role of price adjustment, establish a reasonable consumption structure, thereby reducing resource consumption, protecting the environment, implementing the concept of green marketing, coordinating the relationship between enterprises, consumers and ecological environment, and achieving the goal of sustainable operation of enterprises. Traditional product portfolio pricing is based on the internal correlation between the demand and cost of product series, without considering the ecological environment. Third, the differential pricing strategy of green products This pricing strategy, also known as price discrimination, refers to the adoption of different prices according to the intensity of consumer demand and the understanding of a certain green product, and the cost of this product is the same, that is, the profit of green products varies with different consumer groups. Enterprises can adopt the differential pricing strategy of green products in international marketing. Due to the great differences in social and economic development in different countries, people's education level and income, enterprises adopt different prices for different international market segments, which not only expands sales, but also ensures certain profits. For example, green products can be set at high prices in developed countries such as Britain, France and the United States, while low prices can be adopted in some developing countries. We should pay attention to the differential pricing of green products: too high a price may affect its competitiveness, and too low a price may lead to low-priced competition and illegality. We should analyze and evaluate the marketing environment of the target market. Fourth, the competitive pricing strategy of green products Competitive pricing is to determine the price of one's own products according to competitors' products, especially when suppliers are relatively scarce. Although competitive pricing method also considers the cost and demand of products, the main basis is the price of competitive products. Green products can also adopt competitive pricing strategy, that is, pricing strategy based on the same or similar green product price level in the market. However, the application of competitive pricing strategy for green products has its special significance: 1. Competitors can develop and expand some green industries by maintaining the same or similar prices, especially those with large investment, low profits, slow effectiveness and fragility, such as ecological agriculture. 2. For some industries that play a significant role in the whole social welfare and have poor economic benefits, such as environmental protection industry, competitors can adopt strategic alliances and adopt the same price strategy to avoid price wars and damage the whole industry. 3. For some industries with scarce production resources, competitors should sign price agreements to limit demand, control supply and maintain the long-term development of the industry. V. Cognitive value pricing strategy of green products (I) Cognitive value pricing method Cognitive value pricing method is a method to determine the price according to the cognitive value established by non-price variables in the marketing mix in the minds of target consumers. Bazil and Wilsemer studied the influence of different marketing variables on market share, and they found that: 1. Companies that benefit from share always develop and add more new products to their product lines. 2. Companies that improve the quality of their products compared with competitors can gain a larger market share than those whose quality remains the same or declines. 3. Companies whose marketing expenses increase faster than the market growth rate can typically gain market share. As far as the industrial market and the consumer market are concerned, the increase in sales team expenses will be effective in terms of market share. The increase in advertising costs will mainly increase the market share of consumer goods companies. The increase in promotional expenses is effective for all kinds of companies to generate shares. 4. Companies that cut prices much more than their competitors often go against expectations and can't get obvious market share benefits. Assuming that there are enough competitors to implement partial price reduction, and other competitors provide other values to buyers, so that buyers will not have much interest in price reduction. The results show that non-price variables in marketing mix play an important role in expanding market share, and non-price variables have an important impact on consumers' purchase decisions. Marketers shape the unique value of products in consumers' minds through non-price variables such as product quality, product innovation and promotion, form cognitive preferences, and thus increase purchase choices. (II) Cognitive value pricing strategy The cognitive value pricing strategy of green products is to coordinate the price variables with other marketing mix variables, so as to achieve the purpose of increasing sales. Through the positioning, quality and promotion of green products, and the shaping of green image of enterprises, we can establish unique cognitive value in consumers' minds and determine the corresponding price according to the cognitive value of consumers. The key of cognitive value pricing is to coordinate the price elements and non-price elements of marketing mix and maintain a high degree of consistency between them. First of all, the customer's expectation should be consistent with the product experience value, that is, in green promotion, the benefits conveyed should be consistent with the product experience value, so as to satisfy customers. Secondly, the product pricing is consistent with the customer's cognitive value, so that customers can feel that it is worth the money. Green product pricing strategy should be used together with other marketing mix strategies, and its specific pricing steps are as follows: 1. Determine the target market. On the basis of market segmentation of green products, the market that enterprises can enter is selected as the target market. 2. Market positioning. Among the consumers in the target market, determine the unique value position of the enterprise products, and determine the differentiated content and category (that is, what are the differences with competitors' products and how much). 3. Determine the marketing mix. According to the demand of the target market and market positioning, develop and produce appropriate products, draw up preliminary prices, deliver products to the target market through appropriate distribution channels, convey appropriate information to consumers through promotion, and establish product value expectations. In this process, we should pay attention to the following points: (1) the product quality should be consistent with the promotion information; (2) Consistency between distribution mode and product positioning, for example, high-grade green products cannot be sold through discount stores; (3) Consistency between price and other marketing elements. 4. Trial sale at the preliminary price. Put the products into the market at the current price and promote them. 5. Recognition of cognitive value. Through marketing research, we can understand the market's awareness of the launched green products, the awareness and evaluation of the performance, use, quality and appearance of the green products, especially the awareness and recognition of the green features of the products. Finally, the comprehensive evaluation of product value, there are two methods: (1) direct price evaluation method. Green products target market consumers' interest in their own products and other products