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Pricing Strategy In Strategic Marketing

966 Words4 Pages

Pricing is the basic tactic adopted by the companies to attain their objectives. However, it is also the most complex of the tactics to be pursued by marketers. Too high a price could dissuade buyers away from the product and get attracted to competitive offers while a price that may be perceived as too low may cause buyers to doubt its quality and value. Contrary to popular perception, price is not calculated on the basis of cost plus a reasonable profit. It is based on the brand image created in the consumer minds and a level the market is willing to bear.

According to experts, pricing as a marketing instrument is difficult to leverage effectively as it involves decision making horizontally and vertically within an organization. Pricing tactics are usually made on the basis of supply and demand, its elasticity and other parameters. Price elasticity refers to a percentage …show more content…

The pre-requisites for a successful campaign are knowing the status of the company vis-as-vis competition (market share), developing marketing communication and understanding the target audience.

With a proper understanding of all the above factors any campaign may end up to be a failure not able to achieve the objectives. Strategic marketing is vital for achieving long term goals of the company and those only adopting tactical marketing on an adhoc basis risk the possibility of not able to convert potential leads.

Disruptive technologies, recessionary market conditions, new competition from other industry verticals and competition within the industry are all factors that could impact the fortunes of brands and hence marketers need to be constantly on their toes to stay ahead. No marketer would be wise enough to ignore the inbound marketing strategies now in vogue thanks to rise in internet penetration, websites, blogging and search engine optimization (SEO)

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