I/ BRANDING

1/ The purpose of Branding in pricing strategy:

to create value and establish the positioning of a product or service in the minds of
customers. It involves building and managing a strong and unique brand that
customers can recognize and remember.

Branding in pricing strategy helps you build a strong brand, create special value,
and position your product or service in the minds of customers. This allows you to
apply a higher pricing strategy and differentiate yourself from competitors.

2/ The important benefits of Branding in pricing strategy:

 Creating value beyond price: An effective branding strategy can create
psychological value for your product or service, helping customers recognize
the benefits and unique features it offers. When customers perceive higher
value than the price, they are more likely to accept a higher price point.

 Creating differentiation: Branding helps build a distinct and recognizable

image for your product or service. By creating differentiation and uniqueness
from competitive rivals, you can establish a competitive advantage and offer
unique value, allowing you to apply higher prices.

 Building trust and credibility: A strong and trustworthy brand helps build
trust and credibility with customers. When customers trust your brand, they
are willing to pay a higher price to own your product or service.

 Brand positioning: Branding strategy allows you to position your product or

service in the minds of customers. By creating a unique and differentiated
image and positioning your product or service as a top or premium choice,
you can apply higher pricing and attract customers who are willing to pay
more.
  Creating brand recognition and recall: When customers recognize and
remember your brand, they are more likely to choose your products or
services over competing options. This creates preference and may allow you
to apply higher prices.

3/ The mission of Branding:

to create a unique image and reputation for the brand, build a strong emotional
connection with customers, and generate sustainable value for the business.
This mission can be accomplished through specific objectives:
 Building trust and confidence: The mission of branding strategy is to build
trust and confidence from customers. This requires creating a reliable, high-
quality brand that is dedicated to meeting customer expectations. When
customers trust the brand, they are more likely to choose and be willing to
pay a higher price for its products or services.

 Creating differentiation and unique value: Branding strategy needs to create

differentiation and unique value for the brand. This helps establish a
competitive advantage and attract customers. When customers perceive
distinct values and benefits from the brand, they are more willing to pay a
higher price.

 Building long-term customer relationships: An important mission of branding

strategy is to build long-term customer relationships. By creating a brand that
is aligned with customer values, beliefs, and goals, you can foster loyalty and
generate enduring value over time.

 Contributing to society and the environment: Another important mission of

branding strategy is to contribute to society and the environment. By building
a socially responsible brand, it can earn positive recognition and acceptance
from customers and the community, thereby creating sustainable value for the
business.

4/ The values that branding strategy brings:

  Integrity and quality: The brand places value on integrity and quality in all
aspects of the business. This ensures that its products or services meet
customer expectations and provide a positive experience.

 Innovation and creativity: The brand can deliver value through innovation
and creativity. By introducing new, breakthrough products or services that
address customer needs, the brand can create a competitive advantage and
attract customer interest.

II/ CUSTOMER ORIENTATION:

1/ The purpose:

to create value for customers and meet their needs effectively. This ensures that
the pricing is perceived as fair and reasonable by customers, thereby generating
long-term benefits for the business, creating value for customers, fostering
competitiveness, building and maintaining customer relationships, and
maximizing customer value.

 Understanding and meeting customer needs: The primary objective of

customer orientation in pricing strategy is to understand and meet customer
needs. By researching and analyzing the market, businesses can determine
the value that customers expect from their products or services. This helps
to price the offering appropriately and fulfill customer requirements,
leading to satisfaction and loyalty.

 Creating competitiveness: Customer orientation in pricing strategy helps

businesses create a competitive edge in the market. By pricing
competitively and reasonably, businesses can attract customers away from
competitors. This may include lower prices, better value, or other special
offers that customers appreciate.

 Building and maintaining customer relationships: By applying customer

orientation in pricing strategy, businesses can build and maintain long-term
customer relationships. This is particularly important for fostering loyalty
and repeat purchases. Fair and transparent pricing helps establish trust and
support from customers.
  Maximizing customer value: The objective of customer orientation in
pricing strategy is to maximize customer value. This can be achieved by
creating a pricing model that aligns with the benefits customers receive.
When customers perceive that the value they receive exceeds the price they
pay, they feel satisfied and motivated to continue the relationship with the
business.

2/ Some benefits:
 Customer satisfaction: Applying a customer-oriented approach in pricing
strategy helps meet customer needs and expectations. When customers
perceive the pricing as fair and aligned with the value they receive, they
feel satisfied. This sets the stage for long-term relationships and repeat
purchases.

 Building loyalty and enhancing customer retention: When customers

perceive that a business cares about their needs and provides good value,
they tend to become loyal to the brand. This creates a competitive
advantage and helps the business maintain long-term relationships with
customers.

 Increased market competitiveness: Implementing a customer-oriented

pricing strategy helps create market competitiveness. By understanding and
addressing customer needs, businesses can deliver better value and attract
customers away from competitors.

3/ The mission:

 Understanding the customer: have a deep understanding of the customers,

including their needs, expectations, desired value, and the context in which
they operate. This requires market research and analysis, listening to
customer feedback, and engaging directly with them to gather necessary
information.

 Meeting customer needs: to effectively meet the needs of customers. This

may involve providing appropriate products and services, reasonable
pricing, creating a good shopping experience, and delivering quality post-
sales support.
  Creating value for customers: to create value for customers. This can be
achieved through delivering quality products and services, optimizing the
customer experience, and providing benefits and solutions that meet
customers' needs.

 Building long-term relationships: to build and maintain long-term

relationships with customers. This requires establishing trust and loyalty
from customers by meeting their expectations, resolving issues promptly,
and continuously delivering value.

III.Profit maximization:
a. Profit maximization plays an important role in the pricing strategy. Here are
some of the roles of profit maximization:
- Identify core goals: Maximizing profits is the main goal of many businesses.
Effective pricing helps businesses get the most profit from their product or service.
- Cost-to-value balance: Profit-based pricing helps businesses ensure that they
gain enough revenue to cover production, operation, and development costs.
At the same time, the price must also match the value that the product brings to
customers.
- Increase competitive advantage: Competitive prices can attract customers and
help businesses dominate market share. However, excessive discounting can affect
profitability.
Businesses need to consider the cost, product value and price of competitors to
come up with the right price.
- Help businesses position their brands: High prices can help position high-end bran
ds, while low prices align with market entry strategies or attract price-sensitive cust
omers.
b. Profit maximization plays an important role in a pricing strategy for
the following reasons:
Because profit maximization is an important element of
a pricing strategy because it helps businesses achieve many important goals
such as maintaining operations, growing, attracting customers, building brands,
and measuring performance.
c. The value of maximizing profits in the pricing strategy:
- Increase revenue and profit:
+ The main goal of profit maximization is to increase revenue and profit
for the business.
+Effective pricing helps businesses get the highest price that customers
are willing to pay for their product or service.
- Effective competition:
+ Competitive prices help businesses attract customers and compete effectively
with competitors in the market.
+ Profit maximization gives you the resources to invest in research and
development, product improvement, and marketing enhancement.
- Strengthen brand position:
+ High prices can help businesses position high-end brands and build a reputable
image in the minds of customers.
+The maximization of profits helps businesses have resources to invest
in branding and product promotion.
- Efficient resource allocation: +
+ High profits help businesses have resources to investin other activities such as
research and development, staff training, market expansion, etc.
+ The effective allocation of resources helps businesses grow and
develop sustainably.
- Performance measurement:
+ Profit is an important metric to evaluate the performance of a business.
+ Tracking profits helps
businesses identify performance and areas for improvement.
IV.Market positioning
a. The role of market positioning in pricing strategies:
- Determine value for customers: Market positioning helps businesses determine
the position of the product or service in the minds of customers compared to
competitors. This helps businesses understand the value that the product brings
to customers and offer an appropriate price.
- Make a difference: Market positioning helps businesses differentiate their
products or services from competitors. This helps the business attract target
customers and giustificar higher prices.
- Support marketing strategy: Market positioning helps businesses build
an effective marketing strategy. This helps businesses convey the right
message to their target customers and persuade them to buy products.
- Increase the effectiveness of the pricing strategy: Market positioning helps
businesses offer prices that align with the value perceived by customers. This helps
businesses maximize profits and increase the effectiveness of their pricing strategy.
b. Market positioning is important to a pricing strategy because:
- Because market positioning is one of the trade policies that every business needs
to implement . It brings many benefits to businesses such as playing
an important role in determining value for customers, differentiating, supporting
marketing strategies and increasing the effectiveness of pricing strategies.
c. The value that market positioning brings to the pricing strategy:
- Determine value for customers: Market positioning helps businesses determine
the position of the product or service in the minds of customers compared to
competitors. This helps businesses understand the value that the product brings
to customers and offer an appropriate price.
 - Make a difference: Market positioning helps
businesses differentiate their products or services from competitors. This helps the b
usiness attract target customers and giustificar higher prices.
- Support marketing strategy: Market positioning helps businesses build an
effective marketing strategy. This helps businesses convey the right message
to their target customers and persuade them tobuy products.
- Increase the effectiveness of the pricing strategy: Market positioning helps
businesses offer prices that align with the value perceived by customers. This helps
businesses maximize profits and increase the effectiveness of their pricing strategy.
- Increase competitiveness: Market positioning helps businesses build a unique
position in the minds of customers, thereby increasing their competitiveness
with competitors.
- Reduce marketing costs: When businesses have a clear position in the minds
of customers, they will easily convey their marketing messages to the right audience
, thereby reducing marketing costs.
- Increase customer retention: When customers are aware of the value of a product
or service, they tend to stick with the business for a long time.
- Development strategy orientation: Market positioning helps businesses determine
a clear direction for future product, service and brand development strategies.