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Effective Pricing
Supports Marketing
Prepaired by:
GROUP 1
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What is Effective Pricing?

Effective pricing is one which helps achieve
business goals, increasing market share, building brand
loyalty, increasing profits while remaining competitive.

What is Marketing?
Refers to all activities a company does to
promote and sell products or services to consumers.
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Role of Effecting pricing in Marketing

The role of Effective pricing in Marketing
includes creating a first impression, attracting
customers, satisfying their needs, and differentiating a
business from its competitors.

Importance of Effective Pricing in Marketing

Effective pricing directly influences both a businesses
profitability and consumer purchasing decisions
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Importance of Effective Pricing in Marketing

Revenue Competitive Brand

Generation Advantage Image

Product Flexibility
Market
Lifecycle and
Penetration
Management Adaptability
Customer
Marketing
Perception
Communication
and Loyalty
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Factors to consider when setting an Effective Price

to support Marketing

1. Cost Analysis. This encompasses all product

creation and delivery expenses, such as production
cost, logistics and even marketing expenditures.
2. Assessing Market Demand. To determine the
customer’s willingness to pay which can vary
depending on the product’s demand.
3. Competitive Landscape. It helps in benchmarking
and ensures that the product is not priced out of
market.
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Here are some ways how effective pricing supports

Marketing

1. Customer Attraction and Retention. Pricing can be

a determining factor for customers in choosing one
product over another. Effective pricing can attract
new customers and retain existing ones.

2. Brand Positioning: The price of a product often

reflects its perceived value. Therefore, pricing can be
used as a tool to position a brand in the market.
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3. Competitive Advantage. Companies can gain a

competitive advantage by offering better value for
money than their competitors. This doesn't necessarily
mean being the cheapest, but rather offering the best
quality or service for the price.

4. Profitability. Pricing also directly impacts a

company's bottom line. By setting prices that cover
costs and provide a reasonable profit margin,
companies can ensure their financial sustainability.
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5. Market Penetration. Businesses can use pricing

strategies like penetration pricing, where they set a
lower price initially to enter a market and gain market
share quickly.

6. Promotional Tool. Pricing can also be used as a

promotional tool. For instance, discounts, sales, and
special offers can attract customer attention and boost
sales.
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Pricing Tactics to Support Marketing

Dynamic
Bundling Discount
Pricing
• Package • Offer • Adjust
product to selective pricing in
enhance discounts to real-time
perceived drive sales based on
value and volume demend
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