What is pricing about in marketing mix (7P's)?

In this article you will learn:

• What does price mean?

• What is the importance of the Pricing?

• How the consumers/Customers are responding to different pricing strategies?

What does Price mean?

Price is the financial value of your product, which is reflected as a cost for the customer. The price is the gate for maximizing your revenues and generating profit objectives. The customers feel that your price is representing a value for them, when you are positioning this issue in your marketing strategy, so when you tell your customers that the price they are going to pay is of real value on the short and long term to them, then your price; high or low (relatively to your competitors) won’t be a real problem for them.

What is the importance of Pricing?

The price is representing the 4^th P in the 7 P’s of Marketing Mix, so the your pricing strategy is an essential part of your marketing mix, and this pricing strategy will help you to create a better environment and more effective long-term relationship with the customers

Actually your pricing strategy will be affected by consumer behavior in the marketplace (if your target segment is really looking for lower prices products and they don’t care about the quality), also it’s affected by your competitor pricing strategy and their products’ quality; I mean if your competitors are having a low price products, and medium quality, then you can launch a new product of high quality and medium price, also your pricing strategy get affected by Macro-Environmental factors (PESTEL) and Micro-Environmental factors (Business, Customers, Suppliers, Stakeholders, and Competitors, Porter’s Five Forces, SWOT Analysis) in your industry.

How are the customers responding to different pricing strategies?

Actually this is depending on multi-factorial issues; Macro-Environmental factors, Micro-Environmental Factors, your competitive advantage strategy (focus marketing strategy provides a highest price with highest quality, Differentiation Marketing strategy; high to medium price with high quality, or Cost-Leadership Marketing Strategy; the most economic price for the consumers), also this is depending on your positioning strategy to your target market; are you positioning your product to be representing a real customers value?

Related Articles to Price Mix:

1. Customers Price Perceptions about Different Pricing Strategies (part 1 and 2).

2. What are factors affecting your pricing Strategies?

3. What Is Customers’ Value Proposition?

4. What is Employees’ Value Proposition (EVP)?

5. What is a Price Elasticity and Inelasticity of Demand?

6. Price Determinants:

• What Are Price Determinants; what are the factors affecting Price Determination of your products or services?
• Price Sensitivity as Price Determinant
• Competitors as Price Determinant; Price Cuts and Price Wars (Part 1 and Part 2)
• Product Life Cycle (P.L.C.) as Price Determinant
• Debtors and Creditors as Price Determinant
• The Beak-even Analysis As Price Determinant
• Marginal Costing as Price Determinant.
• Product Adoption Process as Price Determinant

7. What Are Pricing Objectives?

8. What are pricing Strategies in Marketing Mix?

9. What is Strategic Pricing Strategies in Marketing Mix?

10. What is Tactical Pricing Strategies in marketing mix?

11. What Are Stages of Developing New Price?

Related articles to Marketing Mix (7 P’s or Marketing Tactics):

1. What is a marketing mix strategy in 7 steps?

2. What is Marketing Mix Strategy from Organizations and Customers’ Perspectives?

3. Product:

3.1. What is a product strategy?

3.2. What is a product in marketing terms?

3.3. What is a product portfolio in marketing?

3.4. What is a product portfolio analysis?

3.5. What are elements of product marketing?

3.6. What are product characteristics in marketing mix?

3.7. How to make a Product portfolio management?

3.8. Product Life Cycle:

• What are Product Life Cycle Stages?
• Why product life cycle is important?
• What is a product life cycle management?
• Product life cycle examples (examples of short and long product life Cycles)
• How to extend the product life cycle in 5 steps?

3.9. B.C.G. Matrix:

• What is a BCG Matrix Model (Boston Consultancy Group Matrix) Model?
• How to Make a BCG Matrix Model (Boston Consultancy Group Matrix) Model?
• BCG Matrix (Boston Consultancy Group Matrix) Examples (Case Study no.1).
• BCG Matrix (Boston Consultancy Group Matrix) Examples (Case Study no.2).
• BCG Matrix (Boston Consultancy Group Matrix) template free (PDF, PowerPoint, and Word formats).

3.10. G.E. Matrix:

• What is a GE Matrix (General Electric Matrix) Analysis Diagram? (Diagram, Definitions, how many factors should be involved?)
• What are the factors affecting Market Attractiveness in G.E. Matrix (General Electric Matrix) Analysis Diagram?
• What are the factors affecting Company Business Strengths or Position in G.E. Matrix (General Electric Matrix) Analysis Diagram?
• How to calculate the market attractiveness in G.E. Matrix (General Electric Matrix) Analysis Diagram?
• How to calculate Company Business Strengths for your company and competitors companies in G.E. Matrix (General Electric Matrix) analysis Diagram?
• What is the recommended strategy to manage products/services in the G.E. Matrix (General Electric Matrix) Analysis Diagram?
• GE Matrix (General Electric Matrix) example (Case Study)
• GE Matrix (General Electric Matrix) template Free (PowerPoint, Word, PDF).

3.11. New Product Development:

• Stages of new product development process in 7 steps.
• What are new product development process types?
• What is the use of a new product development process steps ?

3.12. Product Adoption Process:

• What is a New Product Adoption Process?
• Consumer Behavior in a New Product Adoption Process.
• How to make a new product adoption with your customers?
• Product Adoption Process as Price Determinant

4. Promotion (Marketing Communications):

4.1. How to improve marketing communications in 3 approaches?

4.2. How to get a marketing communications job?

4.3. What is integrated marketing communications?

4.4. What is an integrated marketing communications plan?

4.5. How to make an integrated marketing communications plan in 7 steps?

4.6. Integrated marketing communications templates (Word, PowerPoint and PDF).

4.7. How to make customers profiling?

4.8. How to use Pull-Push Strategy in Marketing Communications Plan?

4.9. What is a marketing communications objectives framework?

4.10. What are integrated marketing communications objectives?

4.11. Branding:

• What is a brand manager job in marketing career?
• What is a Brand in Marketing terms?
• What is a branding in marketing terms?
• How to develop a branding strategy?
• How to create a brand identity?
• What are Brand Perspectives?
• How to create Brand Loyalty?
• How to build Brand Value?
• How to build Brand equity?

4.12. Integrated Marketing Communications Mix:

• What is a marketing communication model?
• What is a Coordinated Marketing Communications (CMC)?
• What is advertising in marketing, advertising age, techniques and strategies?
• How to manage integrated marketing communications mix in different stages of Product Life Cycle?
• Creative Sales Promotions Ideas and Techniques in marketing communications mix
• What are trade promotions management strategies and techniques?
• How to gain customers loyalty and improve customers’ retention?
• What are Public Relations strategies and tactics in marketing communications?
• What are Creative Direct and Interactive Marketing Strategies in Integrated Marketing Communications Mix?
• What is Database Marketing about?
• What is a sponsorship about in marketing communications?
• What is a Personal Selling about in integrated marketing communications mix?