PRICE IS TOO IMPORTANT TO ADDRESS TACTICALLY This is the second of five articles in THE REPORT this week on the subject of pricing – considering strategies for maximising margins in the short, medium and long terms. The marketing strategy needs to incorporate a pricing strategy addressing achievement of the optimum price – with the […]

PRICE IS TOO IMPORTANT TO ADDRESS TACTICALLY This is the second of five articles in THE REPORT this week on the subject of pricing – considering strategies for maximising margins in the short, medium and long terms. The marketing strategy needs to incorporate a pricing strategy addressing achievement of the optimum price – with the optimum pricing being the one that maximises profitability by achieving the optimal balance in terms of: I would argue that the optimum price will never be achieved by way of: Cost plus pricing – paying no attention to the environment. Target return pricing – paying no attention to the market. Comparison pricing – paying little attention to inherent value. Cost plus pricing is only good for establishing the minimum pricing required to justify production and marketing of the product or service. Achieving the optimum pricing will almost inevitably involve: Value based pricing – taking into…