Linking marketing and pricing strategy

Linking marketing and pricing strategy

Selecting transcript lines in this section will navigate to timestamp in the video

– Your marketing strategy must be tightly linked with marketing tactics. The classic four Ps of marketing, product, price, promotion, and place. Your strategy won’t succeed unless you execute it properly. Let’s look at how you make this linkage in pricing. Before I do that, let’s make sure you understand what a marketing strategy is. In its most simple form, strategy involves two choices. Which part of the overall market do you want to compete in? And, how you’ll compete, meaning how will you position your offering in a way that beats the competition? Every market has four parts that you can focus on. First, is your current, 100% loyal customers. They buy exclusively from you. Second, are those customers who buy only from your competitors. Third, are customers who buy from you and your competitors, I call them multi-brand customers. And finally, are potential customers who don’t buy anything from you or your competition. I call them non-category customers. They have a potential to become a customer if you give them a good reason. Take a look at this matrix, a good marketing strategist focuses most of their resources on one group at a time, based on which choice yields the best financial return. If you try to focus on more than one, you dilute your resources, and that becomes risky. As the old saying goes, fish where the fish are. Your pricing approach changes depending on what group you’re going after. So here’s how to make that link. If you’re going after non-category users, you set price based on the sum of all the sources of value, economic, emotional, and functional, minus any costs the customer has to bear to use your product. And then, you offer a temporary discount off this price to motivate the customer to try your product. To set price for your loyal customers, you take the same approach, value-based pricing. But then you offer them occasional discounts or other rewards to recognize their loyalty. When going after these two groups, you must avoid making comparisons between your products or services and your competitors. Only focus their attention on the value delivered for the price they pay. When you set prices for customers who use your competitor’s products, the approach is much different. In this case, you have to set your price relative to the competitor’s price. Now, here’s an important tip. Remember, price is a signal of value, and customers use that price to make comparisons between products and the value they bring. So, if your product is better than the competition, set your price higher. If it’s not as good as the competition, set your price lower. And if your products are identical to the competition’s, set your price exactly equal to their price. If you follow these guidelines, price now becomes a very useful piece of information for the customer. They’ll understand exactly what you’re trying to tell them. And most importantly, you’ve made that critical link between your marketing strategy and pricing strategy.

StudyAcer
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work With StudyAcer

StudyAcer

Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

StudyAcer

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

StudyAcer

Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.

StudyAcer

Prompt Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.

StudyAcer

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.

StudyAcer

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

StudyAcer

Place your order

Fill in the order form and provide all details of your assignment.

StudyAcer

Proceed with the payment

Choose the payment system that suits you most.

StudyAcer

Receive the final file

Once your paper is ready, we will email it to you.

StudyAcer Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

StudyAcer StudyAcer

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

StudyAcer StudyAcer

Admissions

Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

StudyAcer StudyAcer

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

StudyAcer StudyAcer

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.