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Authors:
Published by:
Harvard Business Publishing (2006)
Chapter from:
"Marketer's Toolkit: The 10 Strategies You Need to Succeed"
Length:
23 pages

Abstract

Pricing is one of the linchpins of marketing strategy and success. Early markets are reached by 'prestige pricing' and 'price skimming' to make the product appear valuable to the target segment. These strategies develop perceived customer value in the product, and only then should 'cost-plus' pricing be introduced to make the product available to all financial sectors. By then, a firm should have gained market leadership with profits redirected toward developing another prestige-priced, hot, new sell, perpetuating top-line growth throughout the market. This chapter is excerpted from ‘Marketer's Toolkit: The 10 Strategies You Need to Succeed'.

Topics

Market positioning; Marketing; Marketing mixes; Price earnings ratio; Pricing; Pricing strategy

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