In our video on Marketing Mix, one of the 4 Ps was Price. So, let's look at pricing strategy.
Watching this video is worth 2 Management Courses CPD Points*.
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Marketing for Managers
This video is part of course module number 8.3.3
Program 8: Managing Customers & Clients
Course 3: Marketing for Managers
Section 2: Marketing Mix
Other videos in this section include:
🎬 What is the Marketing Mix - The 4Ps? • What is the Marketing ...
🎬 Marketing Mix: Product - What is the Product Marketing? • Marketing Mix: Product...
🎬 Marketing Mix: Place • Marketing Mix: Place a...
🎬 Marketing Mix: What is Promotion? • Marketing Mix: Craftin...
🎬 Marketing Mix: What is Positioning? • Marketing Mix: The Fif...
🎬 What is the Marketing Channel Mix? • What is the Marketing ...
🎬 What is Public Relations (PR)? • What is Public Relatio...
🎬 Guy Kawasaki: What is Enchantment? • Guy Kawasaki: What is ...
🎬 Seth Godin: What are Tribes? • Seth Godin: What are T...
LESSON NOTES
Price is the amount you charge for your product or service.
On the face of it, Price is a simple economic calculation. But price plays other roles:
• Incentive
• Differentiator
• Competitive advantage
• Promotional tool
Price needs to set the right tone in the market, attract the right customers to your product, and also allow for promotional pricing strategies like:
• Payment terms
• Credits terms
• Payment plans
• Bundling discounts
• Discount policies
• Ad hoc discounts
In setting price, ask what are your marketing objectives?
• Survival in the marketplace
• Maximizing profit
• Maximizing sales
• Growing or maintaining market share
• Eliminating competition
• Creating a customer loyalty
• Differentiating on quality
Overlay these onto your existing competitive position:
• Monopoly supplier
• Market leader
• Cost leader
• New entrant
• Niche player
• Declining brand
Consider the impact of your pricing strategy on:
• Demand
• Customer perceptions
• Competitor responses (price wars are dangerous and often, no one wins them)
Typical pricing strategies include:
• Cost-plus
• Target profit
• Value-based pricing
• Competitive Pricing
• Geographic Pricing
RECOMMENDED EXERCISE
Think about a product or service your organization produces and markets. If your organization doesn't produce a product or service, then pick one you are familiar with either through your work or domestic life.
1. What is its competitive position? (2 MC CPD Points)
2. What are the marketing objectives for it? (2 MC CPD Points)
3. What is the pricing strategy? (2 MC CPD Points)
DOWNLOADS
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RECOMMENDED READING
📖 Very quick overview
Marketing: A Very Short Introduction geni.us/ozSJF
📖 Good general overviews
Kotler on Marketing geni.us/JNeVHy
Positioning: The Battle for Your Mind geni.us/kGj4KCA
The 22 Immutable Laws of Marketing geni.us/RVU1
Marketing For Dummies geni.us/sZXAw
📖 Small business marketing
The 1-Page Marketing Plan geni.us/Xb4wBk
📖 For a textbook, you can’t go wrong with Kotler’s name on it!
Marketing: An Introduction geni.us/q4gzVOw
Principles of Marketing geni.us/gsFeMT5
Marketing Management geni.us/i3FO
⭕️ Links to our book recommendations are affiliated through Amazon
Managers Need a Basic set of kit to do your job well. Here are my top recommendations: kit.co/MikeClayton/manager-s-... (the links are affiliated)
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#PricingStrategy #ManagementCourses #MarketingMix