Introduction to Pricing Considerations

What you’ll learn to do: explain the primary factors to consider in pricing

The Market Planning Process: vertical Flowchart with 7 layers. From top, Layer 1 “Corporate Mission” points to Layer 2 “Situational Analysis,” points Layer 3 “Internal Factors: Strengths & Weaknesses” and “External Factors: Opportunities & Threats,” points to Layer 4 “Corporate Strategy: Objectives & Tactics.” Layers 2-4 are connected with gray lines, as one sub-unit. This points to Layer 5 “Marketing Strategy: Objectives & Tactics,” to Layer 6, a graphic showing “Target Market” as the central piece of the 4 Ps surrounding it: Product, Price, Promotion, Place. The final layer is “Implementation & Evaluation.” Layers 5-7 are connected with gray lines, as a second sub-unit.Now that we’ve considered the customer perspective, we need to understand how pricing fits into the company strategy. It’s important to remember that all elements of the marketing mix, including pricing, fit into a larger customer mission and strategy.

An effective pricing strategy will align with the corporate mission, account for competitive factors, and support corporate strategies and objectives.