MKTG 700 Strategic Pricing
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Pricing is your single biggest leverage to maximize profitability. When you set strategic pricing, your profits will go up. Strategic pricing is about actively creating an environment in which better and more profitable pricing results will naturally be obtained.
Some people define strategic pricing as creating value. Some people define this as competition. Others will use it to describe the price level and price range for starting a company. As such, there are many definitions and subtle differences of opinion, but overall, strategic pricing incorporates pricing best practices and ensures that your pricing strategy, analysis, and pricing process complements your business strategy.
Price is the cost of a product or service. It is the result of a series of complex calculations, research and understanding, and the ability to bear risks. A pricing strategy takes into account factors such as market segmentation, solvency, market conditions, competitor behavior, trading margins, and operating costs. It targets specific customers and targets competitors.
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