Focus on value. Focus on context. Focus on emotions. Prioritise differentiation. Embrace psychology.   Price is one of the most important issues in marketing. It has a direct impact on short-term, medium-term, and long-term profitability. Arguably, price is also the most misunderstood of the four ‘Ps’ of marketing. Price is rarely approached strategically, and even […]

Focus on value. Focus on context. Focus on emotions. Prioritise differentiation. Embrace psychology.   Price is one of the most important issues in marketing. It has a direct impact on short-term, medium-term, and long-term profitability. Arguably, price is also the most misunderstood of the four ‘Ps’ of marketing. Price is rarely approached strategically, and even when approached strategically, price rarely draws on the huge body of science available. All too often, pricing strategies are intuitive. This missive provides the foundation stones for a more scientific and more strategic (and therefore more profitable) approach to pricing that can be adopted by most and possibly all businesses. The misunderstanding of pricing often begins with a limited understanding of price and pricing strategy. There is also a poor understanding of how to develop the optimum pricing strategy. PRICE DEFINED The price of a product is much more than the amount members of the…