Pricing Strategy
Content
Pricing and Distribution
Structure A. INTRODUCTION 1. Overview and Strategy Blueprint 2. Marketing Strategy: Analysis & perspectives
C. WHERE DO WE WANT TO BE? B. WHERE ARE WE NOW? 3. Environmental & Internal Analysis: Market Information & Intelligence
4. Strategic Marketing Decisions, Choices & Mistakes 5. Segmentation, Targeting Targeting & Positioning Strategies 6. Branding Strategies 7. Relational & Sustainability Strategies
D. HOW WILL W ILL WE GET THERE? E. DID WE W E GET THERE? 14. Strategy Implementation, Control & Metrics
8. Product Innovation & Development Strategies 9. Service Marketing Strategies 10. Pricing & Distribution 11. Marketing Communications 12. E-Marketing Strategies 13. Social and Ethical Strategies
Learning Objectives
Examine the separate and complementary roles of pricing and distribution di stribution to marketing strategy.
Assess pricing mindsets and strategic options.
Evaluate the buyer’s perspective of distribution and its implications for strategy.
Introduction Pricing and distribution are distinct yet complementary elements in marketing Strategically they are difficult to separate.
The price ofsimply anything andits the route by which it is distributed reflects value. Porter’s two generic differentiation strategies: strategies: Low cost leader
Differentiation
Key Elements to Pricing Value: Price is fundamenta fundamentally lly about value. value. Customers place prices within the the context of perceived value Variable: Prices can be changed in a number of ways apart from the absolute level, such as by time form or terms of payment Variety: Prices can be set at different levels across multiple products and services Variety: Prices to achieve different objectives for positioning and contribution as with bundling or unbundling items Visible/Invisible: Prices Visible/Invisible: Prices may be open and visible or hidden and confusing for customers Virtual: of all the decisions marketers make, a price change is arguably the easiest Virtual: of and quickest decision to make. make. It might not prove prove to be successful but the decision to raise or lower a price can be made quite straightforwardly in most organisations (Goldenberg, Horowitz, Levav and Mazursky Mazursky,, 2003)
Structure A. INTRODUCTION 1. Overview and Strategy Blueprint 2. Marketing Strategy: Analysis & perspectives
C. WHERE DO WE WANT TO BE? B. WHERE ARE WE NOW? 3. Environmental & Internal Analysis: Market Information & Intelligence
4. Strategic Marketing Decisions, Choices & Mistakes 5. Segmentation, Targeting Targeting & Positioning Strategies 6. Branding Strategies 7. Relational & Sustainability Strategies
D. HOW WILL W ILL WE GET THERE? E. DID WE W E GET THERE? 14. Strategy Implementation, Control & Metrics
8. Product Innovation & Development Strategies 9. Service Marketing Strategies 10. Pricing & Distribution 11. Marketing Communications 12. E-Marketing Strategies 13. Social and Ethical Strategies
Learning Objectives
Examine the separate and complementary roles of pricing and distribution di stribution to marketing strategy.
Assess pricing mindsets and strategic options.
Evaluate the buyer’s perspective of distribution and its implications for strategy.
Introduction Pricing and distribution are distinct yet complementary elements in marketing Strategically they are difficult to separate.
The price ofsimply anything andits the route by which it is distributed reflects value. Porter’s two generic differentiation strategies: strategies: Low cost leader
Differentiation
Key Elements to Pricing Value: Price is fundamenta fundamentally lly about value. value. Customers place prices within the the context of perceived value Variable: Prices can be changed in a number of ways apart from the absolute level, such as by time form or terms of payment Variety: Prices can be set at different levels across multiple products and services Variety: Prices to achieve different objectives for positioning and contribution as with bundling or unbundling items Visible/Invisible: Prices Visible/Invisible: Prices may be open and visible or hidden and confusing for customers Virtual: of all the decisions marketers make, a price change is arguably the easiest Virtual: of and quickest decision to make. make. It might not prove prove to be successful but the decision to raise or lower a price can be made quite straightforwardly in most organisations (Goldenberg, Horowitz, Levav and Mazursky Mazursky,, 2003)
