Marketing For Dummies, 5th Edition

Chapter 14

Finding the Right Pricing Approach

IN THIS CHAPTER

Recognizing pricing opportunities and obstacles

Mastering prices, changes, and special offers

Staying on top of legal issues

As simple as it may seem, pricing is actually one of the most complicated parts of marketing. You need to establish what customers are willing to pay for your category and your brand and develop sound pricing strategies. Is your best strategy to set a low price so you can grow revenue faster? Or raise prices for higher profits? How do you best apply discounts and promotions without minimizing your overall pricing and brand value? This chapter gives some insights about the role of pricing for long‐term growth and profitability.

Pricing Opportunities and Obstacles

It’s easy to think that price is the primary driver for sales and that the lowest priced product wins over customers’ sales and loyalty. Yet, as we mention in earlier chapters about the emotional drivers of choice, being the low‐price leader can actually be detrimental to your long‐term success. Pricing opportunities and obstacles include many elements depending on your market, competition, required profit margins, consumer demand, and ...