11.3 Pricing Considerations

Learning Objectives

  • Explain company objectives in the pricing strategy
  • Define break-even pricing
  • Describe how competition affects pricing strategies
  • Describe the benefit of value-based pricing for customers
  • Explain the primary factors to consider in pricing

The Marketing Planning Process: a 7 layer process. Corporate Mission leads to Situational Analysis which leads to both Internal Factors (Strengths & Weaknesses) and External Factors (Opportunities & Threats). These both lead to Corporate Strategy (Objectives & Tactics) which leads to Marketing Strategy (Objectives & Tactics) which leads to the four Ps: Product, Price, Place, and Promotion which all center around the Target Market. The final layer is Implementation and Evaluation.

Now that we’ve considered the customer perspective, we need to understand how pricing fits into the company strategy. It’s important to remember that all elements of the marketing mix, including pricing, fit into a larger customer mission and strategy.

An effective pricing strategy will align with the corporate mission, account for competitive factors, and support corporate strategies and objectives.

The specific things you’ll learn in this section include:

Learning Activities

  • Reading: Pricing Objectives
  • Reading: Break-Even Pricing
  • Reading: Competitor Impact on Pricing
  • Reading: Benefits of Value-Based Pricing
  • Self Check: Pricing Considerations

 

License

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Introduction to Marketing II 2e (MKTG 2005) by NSCC and Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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