January 2005
Intermediate to advanced
232 pages
5h 35m
English
Pricing in competitive markets is a clear way of placing or positioning a company in the mind of customers relative to other firms. It indicates whether the brand is up-market or down-market.
Nine forms of positioning by price are listed, including the aspirational position where higher prices helped a brand to turn around.
Price positioning is dynamic because changes to competitor prices can alter the position.
To earn higher prices, the chosen positioning must be justified with differentiation. Commodity thinking diminishes the price that can be achieved in the market place. Fortunately there is wide scope for differentiation, functionally, through process and by relationship benefits.
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