Marketing Mix: Price and Pricing Strategy

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*.
🔎 See below for details

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 Mix - The 4Ps: ...  
🎬 Marketing Mix: Product - What is the Product Marketing?    • Marketing Mix: Product - What is Prod...  
🎬 Marketing Mix: Place    • Marketing Mix: Place and Distribution...  
🎬 Marketing Mix: What is Promotion?    • Marketing Mix: Crafting a Message - W...  
🎬 Marketing Mix: What is Positioning?    • Marketing Mix: The Fifth P - What is ...  
🎬 What is the Marketing Channel Mix?    • What is the Marketing Channel Mix? Pr...  
🎬 What is Public Relations (PR)?    • What is Public Relations (PR)?  
🎬 Guy Kawasaki: What is Enchantment?    • Guy Kawasaki: What is Enchantment?  
🎬 Seth Godin: What are Tribes?    • Seth Godin: What are Tribes?  

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 https://geni.us/ozSJF
📖 Good general overviews
Kotler on Marketing https://geni.us/JNeVHy
Positioning: The Battle for Your Mind https://geni.us/kGj4KCA
The 22 Immutable Laws of Marketing https://geni.us/RVU1
Marketing For Dummies https://geni.us/sZXAw
📖 Small business marketing
The 1-Page Marketing Plan https://geni.us/Xb4wBk
📖 For a textbook, you can’t go wrong with Kotler’s name on it!
Marketing: An Introduction https://geni.us/q4gzVOw
Principles of Marketing https://geni.us/gsFeMT5
Marketing Management https://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: https://kit.co/MikeClayton/manager-s-... (the links are affiliated)

MANAGEMENT COURSES CONTINUING PROFESSIONAL DEVELOPMENT (CPD) POINTS
You can record your Management Courses CPD points on our free, downloadable CPD record log.
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