Presentation on Pricing

Strategy
 Revenue generating element from of the mix

 Its belongs in the performance CBBE model

 Consumers willing to pay price premiums , when there is a
perceived added value = Stronger brands

 Aspects of pricing Strategy :

1. Price perceptions
2. Setting prices
• Consumers rank brand according to prices

• Price Bands = range of acceptable prices

• price – product meaning

- value and quality they received

• perception of value received < cost to the company

Sell the right product and the
right price- to better meet
consumer needs
1. Asses what value the customer places on your brand
2. Look for variation in assessing customers value
3. Asses customers price sensitivity
4. Identify an optimal pricing structure
5. Consider competitors reactions
6. Monitor prices at a transaction level
7. Asses customer emotional response
8. Analyse if the returns are worth the cost
Innovations , improvements , and convenience

Outsourcing , material substitution , technology,

product reformulation , factory improvement .
Cost reductions can’t sacrifice quality

Understand what consumers are willing to pay, if

there are premiums and then adjust it for cost and
competition
Everyday base prices

Consistent low prices on major items

will bring consumers back to buy