Developing and Implementing a Marketing Plan

12/7/2020 Pricing Strategy

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Pricing Strategy

Pricing does not simply represent a figure on a price tag. Price has historically been

negotiated between the seller and the buyer, and has traditionally been a leading

determinant in deciding whether or not to buy. The idea of a single set price developed

with the emergence of large retailers. With the increased use of the internet, customers

have more and better access to pricing information from different sellers, thereby forcing

retailers to lower their prices. Companies have responded by offering distinctive product

combinations that sell at a premium. Branding is crucial with respect to these offers

(Kotler & Keller, 2015).

Pricing is complex, and any price changes require extensive research on competitors and

market trends before they can be implemented. Prices inevitably change over time due to

competition, changes in customer preferences, or the appearance of new and better

products. Accordingly, any changes in pricing may substantially affect the ability of the

other marketing mix variables to reflect product positioning in customers' minds (Marshall

& Johnston, 2011).

References

Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). Upper Saddle River, NJ.

Pearson.

Marshall, G. W., & Johnston, M. W. (2011). Essentials of marketing management. New

York, NY: McGraw-Hill.

Learning Topic

12/7/2020 Pricing Strategy

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Resources

Price, the Only Revenue Generator

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revenuegenerator.html?ou=516043)

Smart Pricing Strategies for the Internet Age: A Primer

(http://ezproxy.umgc.edu/login?

url=http://search.ebscohost.com.ezproxy.umgc.edu/login.aspx?

direct=true&db=bth&AN=115753117&login.asp&site=ehost-

live&scope=site)

The competitive implications of a “no-haggle” pricing strategy when others

negotiate: Findings from a natural experiment (http://ezproxy.umgc.edu/login?

url=https://doi.org/10.1016/j.ijresmar.2016.04.002)

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