In our video on Marketing Mix, one of the 4 Ps was Price. So, let's look at pricing strategy.

Watching this video is worth 2 Management Courses CPD Points*.
See below for details

Marketing for Managers
This video is part of course module number 8.3.3
Program 8: Managing Customers & Clients
Course 3: Marketing for Managers
Section 2: Marketing Mix

Other videos in this section include:
What is the Marketing Mix - The 4Ps? https://youtu.be/gsp72V0W8Uw
Marketing Mix: Product - What is the Product Marketing? https://youtu.be/uBFcQByXn9Y
Marketing Mix: Place https://youtu.be/DVaYT7zU7rE
Marketing Mix: What is Promotion? https://youtu.be/n552xtFOV2Q
Marketing Mix: What is Positioning? https://youtu.be/4_wIDOKJS2Q
What is the Marketing Channel Mix? https://youtu.be/pH6Zjrd3IB4
What is Public Relations (PR)? https://youtu.be/2Nc2gDAaxzY
Guy Kawasaki: What is Enchantment? https://youtu.be/8exdRE6gp8k
Seth Godin: What are Tribes? https://youtu.be/INKI-FRUNcA

LESSON NOTES
Price is the amount you charge for your product or service.
On the face of it, Price is a simple economic calculation. But price plays other roles:
• Incentive
• Differentiator
• Competitive advantage
• Promotional tool



Price needs to set the right tone in the market, attract the right customers to your product, and also allow for promotional pricing strategies like:
• Payment terms
• Credits terms
• Payment plans
• Bundling discounts
• Discount policies
• Ad hoc discounts


In setting price, ask what are your marketing objectives?
• Survival in the marketplace
• Maximizing profit
• Maximizing sales
• Growing or maintaining market share
• Eliminating competition
• Creating a customer loyalty
• Differentiating on quality



Overlay these onto your existing competitive position:
• Monopoly supplier
• Market leader
• Cost leader
• New entrant
• Niche player
• Declining brand


Consider the impact of your pricing strategy on:
• Demand
• Customer perceptions
• Competitor responses (price wars are dangerous and often, no one wins them)



Typical pricing strategies include:
• Cost-plus
• Target profit
• Value-based pricing
• Competitive Pricing
• Geographic Pricing


RECOMMENDED EXERCISE
Think about a product or service your organization produces and markets. If your organization doesn't produce a product or service, then pick one you are familiar with either through your work or domestic life.
1. What is its competitive position? (2 MC CPD Points)
2. What are the marketing objectives for it? (2 MC CPD Points)
3. What is the pricing strategy? (2 MC CPD Points)

DOWNLOADS
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Paid resources
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RECOMMENDED READING
Very quick overview
Marketing: A Very Short Introduction https://geni.us/ozSJF
Good general overviews
Kotler on Marketing https://geni.us/JNeVHy
Positioning: The Battle for Your Mind https://geni.us/kGj4KCA
The 22 Immutable Laws of Marketing https://geni.us/RVU1
Marketing For Dummies https://geni.us/sZXAw
Small business marketing
The 1-Page Marketing Plan https://geni.us/Xb4wBk
For a textbook, you can’t go wrong with Kotler’s name on it!
Marketing: An Introduction https://geni.us/q4gzVOw
Principles of Marketing https://geni.us/gsFeMT5
Marketing Management https://geni.us/i3FO

⭕️ Links to our book recommendations are affiliated through Amazon

Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-work-kit (the links are affiliated)

MANAGEMENT COURSES CONTINUING PROFESSIONAL DEVELOPMENT (CPD) POINTS
You can record your Management Courses CPD points on our free, downloadable CPD record log.
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Each video has two levels of MC CPD points. For this video:
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- If you also carried out all of the recommended exercises, score a total of 8 MC CPD points

#PricingStrategy #ManagementCourses #MarketingMix