Marketing Mix: Pricing2017-06-08T23:37:09+00:00

Marketing Mix: Pricing

PRODUCT
PLACE
PRICING
PROMOTION

The Marketing Mix is a set of tools used to elicit a desired purchasing behavior from target customers. The classic definition of the Marketing Mix is comprised of the “4 P’s”: Product, Place, Pricing and Promotion. Maximizing profitability results from offering the right Product, at the right Place(s), at the right Price, with the right Promotion.

Our services can range from a single project, like a promotional flyer, to a targeted advertising campaign, to complete on-going marketing support for your company.

Establishing the correct price point will determine your profit margin, but it will also determine your sales volume and, consequently, your gross profit. Not a simple matter, your pricing should only be finalized following customer analysis, competitive analysis, and business analysis. Your prices may also depend on how your product or service is distributed.

We can look at questions like these to establish the “right” price:

  • What are your fixed and variable costs, and your gross profit margin that will meet your company’s net profit objective, by product, by category?

  • Is your pricing consistent with your company’s position in the marketplace? Are you the market leader, are you in the market penetration phase, or . . . ?

  • How do your products or services compare to your competition’s, for features and for prices?

  • How are your products or services priced at the distribution channels that you utilize?

  • Is there an opportunity for expanding to multiple products or services with different prices or price structures?

  • Is there an opportunity for discounted price promotions to drive increased sales volume?