What factors do you consider before making a purchase?
For instance, do you care most about the quality of the product? Is price your biggest consideration? Or, do you aim for a balance between the two?
If you're the organization making the product or providing the service, pricing it correctly can be tricky. And it can be a disaster if you get your price wrong. Each market is influenced by different factors, so you have to consider these before deciding on the best approach to take.
In this article we'll look at Kotler's Pricing Strategies, a simple model that can help you find the right price for your product or service.
The Importance of Pricing Strategy
It is incredibly important for an organization to identify the right price for its goods. This impacts its present-day performance and profitability, as well as its future growth.
For example, when the price of your product is higher than customers' perception of its value, few people buy it. When it is too low, profitability is affected; this, in turn, limits innovation and growth.
Kotler's Pricing Strategies
Philip Kotler developed his model of nine possible pricing strategies in 1972, and the idea was expanded by Peter Doyle in his 1998 book, "Marketing Management and Strategy."...
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