logo
  • Services
    • Graphic Design
      • Logo Design
      • Publication Design
      • T-shirts ‘n Stuff
    • Web Publishing
      • Hosting & Maintenance
      • eMail Marketing
    • Copywriting
      • Promo Copy Sample: Vistancia
      • Product Copy Sample: Attitude Brewing Co.
      • A Teaching Philosophy
      • Blog Posts
    • Photography
      • Promotional
      • Portraits
      • Automotive
      • Fashion
      • Real Estate
      • Landscapes
  • Inquiries
    • Contact Info
    • FAQs
    • Privacy Policy
    • Refunds
    • Resumé
    • Testimonials
  • Art Prints

The Pricing Process

July 16, 2017Lecture Notes, Marketing InfoConsumers, Education, Price, Promotions

The basic process for developing a price strategy involves 6 steps.

Develop Pricing Objectives

Objectives should be clear. Are we appealing to a small market segment who expect to pay premium dollar? Are we attempting to enter a new market and quickly generate more demand? Your objective should say so.

Identify Target Market and Potential Demand

Analyze which demographic and psychographic elements are attributed to the target market’s buying decisions. Balance that against demand.

If we know that it will take 10,000 DVD players sold to reach our break-even point, are we sure that we will sell at least that many?

Do a Cost to Benefit Analysis

Will the potential profit be worth the expense of development? At which price? By projecting the returns of an assortment of prices, we can determine the best one.

“Shop” the competition

It is vital to know what the competition is doing in terms of price. This will directly affect your position in the market.

Develop a Strategy

Psychological or Promotional? Why? Are we going to focus on demand than low prices?

Evaluate that Strategy

Think the decisions through to the logical conclusion. Will you reach your goals with this price? If yes, set the price, if no, then make a change and re-evaluate.

Remember, as new technologies are developed and the marketing environment evolves, it becomes necessary to re-evaluate the pricing strategy and make changes.

For example, with new vending machine technology, a Coke will most likely cost more in the summer than in winter. Coca-Cola Bottling is now able to offer a flexible price based on demand. The profit per unit can now be maximized on a seasonal basis.

Sort by Category

Blog Posts Lecture Notes Marketing Info Photography Physiological Psychology Quotes Tech Tips Uncategorized Writing Samples

Sort by Tags

4Ps Advertising Ardiente Article Autobiographical Brentwood CA CA Wine Country Central Coast Communication Consumers Distribution Distribution Partners Dramatic Dialogue Education Flickr Instagram Intro to Marketing Isla Vista Las Vegas Lecture Notes LinkedIn Marketing Market segmentation Philosophy Phoenix AZ Place Placement Postmodernism PR Price Price Strategy Pricing Product Products Promotions Psychology Redmond WA Retail Retiring Green Rio Vista CA Sales Shea Homes Teaching Trilogy Vistancia

© Copyright 2023 Scott Norton. All rights reserved.