Pricing Strategy

Price is the one element; In the entire marketing mix; that produces revenue while others produce costs.

Price is also one of the most flexible elements: it can be changed quickly, unlike product features and channel commitments.

Although price competition is a major problem facing companies, many do not handle pricing well.

The most common mistakes are these:
– Pricing is too cost-oriented.
– Price is not revised often enough to capitalize on market changes.
– Price is set independent of the rest of the marketing mix rather than as an intrinsic element of market-positioning strategy.
– Price is not varied enough for different product items, market segments, and purchase occasions.

Tamer Gouda
e-mail: tamer@strategyco.co.uk
Mobile: +966 50 163 9479