Marketing is the act of raising awareness of services and products to the public through various marketing mechanisms and mass media. Why are firms so obsessed with the pricing element of the marketing mix?
The ultimate objective is to make profit by maximizing revenue of services and products.
As in any other field, marketing in the online arena requires proper knowledge of the potential threats posed by a particular product or service. This in turn determines the marketing pricing of the same. The marketing team will try and build a positive reputation for the brand by launching various promotional campaigns and marketing plans.
As in any other field, marketing research has come into existence to aid in the determination of marketing prices.
There are various firms offering marketing services in the UK, who have experts with appropriate expertise in the field of marketing. Marketing companies are engaged in offering marketing plans and helping their clients in setting prices. If you are a new entrepreneur looking forward to setting your own marketing prices, then you should first go through the marketing pricing guidelines set by marketing firms and follow them closely.
Marketing price for a particular product or service depends on a number of factors, which have long been decided.
For example, it would depend on the market penetration of the particular product. It will also depend on how much competition there is in the same domain. Moreover, the pricing of a marketing strategy also depends on the client’s demand and taste. In short, it will also depend on the marketing plan itself. Therefore, before you set your own pricing strategy, you should prepare a marketing plan that specifies your goals, ensures adequate research, checks the feasibility of the same, keeps the customer focus on your products and avoids needless complexities.
The first step in deciding your marketing pricing strategy is assessing the market share of the company.
If the market share is high, then naturally the pricing for the same would also be high. To assess the market share, you should consult with market researchers who can provide you with useful inputs. These experts will be able to tell you the percentage of the market share that the company actually has, which will in turn help you set your prices accordingly.
Marketing strategies based on demand are widely used and widely accepted. This is because marketing determines the prices of a particular product by taking into consideration the demand for it among a large section of people. Thus, marketing pricing is determined by demand. However, some marketing strategies like branding and packaging also have an influence on the pricing tactics, which we will look into later.
Marketing tactics that are used for influencing the pricing strategy include advertising and promotions.
The cost of such techniques will depend on their nature and place of usage. While an advertisement is classified under mass marketing, promotion is classified under direct marketing. Moreover, a pricing strategy also depends on whether it is used for selling only or selling as well and whether it is used for offering incentives to the customers and clients or not.