Pricing

Process of determining the value of a product or service and setting a price that customers are willing to pay.

What are the key factors that senior executives need to consider when determining the most effective pricing strategy?

"Senior executives need to first identify the company's pricing position, pricing segment, pricing capability, and their competitive pricing reaction strategy."

How do pricing strategies and tactics vary?

"Pricing strategies and tactics vary from company to company, and also differ across countries, cultures, industries, and over time, with the maturing of industries and markets and changes in wider economic conditions."

What is the purpose of pricing strategies?

"Pricing strategies determine the price companies set for their products."

What are the different objectives that can be achieved through pricing strategies?

"The price can be set to maximize profitability for each unit sold or from the market overall. It can also be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market."

How can pricing strategies impact a business?

"Pricing strategies can bring both competitive advantages and disadvantages to its firm and often dictate the success or failure of a business."

Why is it crucial to select the right pricing strategy?

"Pricing strategies often dictate the success or failure of a business; thus, it is crucial to choose the right strategy."

What are the primary considerations for identifying a company's pricing position?

"Senior executives need to first identify the company's pricing position, pricing segment, pricing capability, and their competitive pricing reaction strategy."

How can pricing strategies differ across industries?

"Pricing strategies and tactics vary from company to company, and also differ across countries, cultures, industries, and over time, with the maturing of industries and markets and changes in wider economic conditions."

What are the potential advantages of setting prices to maximize profitability?

"The price can be set to maximize profitability for each unit sold or from the market overall."

How can pricing strategies defend an existing market from new entrants?

"It [pricing strategy] can also be used to defend an existing market from new entrants."

What role can pricing strategies play in increasing market share?

"It [pricing strategy] can also be used...to increase market share within a market."

How can pricing strategies facilitate market expansion?

"It [pricing strategy] can also be used...to enter a new market."

What are the factors that can influence the success or failure of a business through pricing strategies?

"Pricing strategies can bring both competitive advantages and disadvantages to its firm and often dictate the success or failure of a business."

What are the key factors to be considered in pricing segment identification?

"Senior executives need to first identify the company's pricing position, pricing segment, pricing capability, and their competitive pricing reaction strategy."

How can pricing strategies adapt to changes in economic conditions?

"Pricing strategies and tactics vary from company to company, and also differ across countries, cultures, industries, and over time, with the maturing of industries and markets and changes in wider economic conditions."

How can pricing strategies impact profitability on a per-unit basis?

"The price can be set to maximize profitability for each unit sold or from the market overall."

What is the role of pricing strategies in countering competition?

"It [pricing strategy] can also be used to defend an existing market from new entrants."

How can pricing strategies drive market dominance?

"It [pricing strategy] can also be used to increase market share within a market."

In what circumstances can pricing strategies facilitate market expansion?

"It [pricing strategy] can also be used to enter a new market."

Why should businesses be cautious in selecting their pricing strategy?

"Pricing strategies often dictate the success or failure of a business; thus, it is crucial to choose the right strategy."