Sunday, February 17, 2013

The right Pricing strategy

What is it? Here is a quick snapshot of my nascent understanding. From my readings it is a combination of the following aspects:

0) pricing strategy should be in sync with your marketing strategy and not convey a message which undermines the entire marketing strategy

1) price products based on EVC (economic value to the consumer), never do cost-plus pricing and never indulge in price war

2) always have multiple price point offerings, different price for different segments

3) have the right price metric in place, sometimes bundle products (Mac value meals) or unbundle (airlines)

4) never do anything that gives consumers a hint of unfair pricing, behavioral responses hurt more than you imagine

5) always think about competitive actions never ignore competitive forces from the equation

No comments: