7P’s of Marketing Strategies & Ways to Compete and types of Marketing PREMIUM PRICING - This is when a business prices

s when a business prices its products or services above

Strategies that work in Pricing. market value. This can be a good strategy if the business has a unique product or
service that is in high demand. However, it is important to make sure that the price is
7P’s of Marketing Strategy justified by the value that the product or service offers.
1. PRODUCT - The first P, Product, refers to the goods or services that a
business offers its customers. In other words, the product is the physical or Additional Tips For Competing in Pricing
intangible offering that a business sells to its customers.
DO YOUR RESEARCH - It is important to know what your competitors are charging for
2. PRICE - The Price element of the 7Ps covers the cost of goods or services. their products or services. You can use online tools to compare prices or hire a market
The price is the amount of money that customers pay for a product. It is research firm to do the research for you..
important to set a price that is both competitive and profitable.
UNDERSTAND YOUR COST - You need to know how much it costs you to produce or
3. PLACE - The Place element of the 7Ps refers to the distribution channels of deliver your products or services in order to set a profitable price.
the business. It can be a physical store, an online store, or a combination of
both. The goal of this P is to make the products easily accessible to customers. CONSIDER YOUR TARGET MARKET - Who are your ideal customers? What are their
needs and wants? You need to set a price that they are willing to pay.
4. PROMOTION - The Promotion element of the 7Ps pertains to the
communication strategies employed to make potential customers aware of OFFER VALUE - Don't just focus on price. Make sure that your products or services
and attracted to the product. offer value to your customers. This could mean providing excellent customer service,
offering a warranty, or having a unique selling proposition.
5. PEOPLE - The people are the employees, customers, and other stakeholders
who interact with a business. It is important to create a positive and PRICING
memorable experience for these people.
Pricing is the process you use to set the price of your product or service. Determining
6. PROCESS - The Process element of the 7Ps refers to the procedures and the right pricing for your offerings can pose challenges.
steps involved in delivering a product or service to the end-user. It is important
to streamline the process and make it as efficient as possible. If you establish prices that are overly high, your customers may perceive your products
as unaffordable. Conversely, if you set your prices too low, it can impact your
7. PHYSICAL EVIDENCE - Lastly, the Physical Evidence element of the 7Ps profitability.
refers to the tangible aspects of a product, including packaging, branding, and
more. Ensuring the tangible aspect of a product aligns with the customer’s Tips to Develop a Price Marketing Strategy
perception of the brand is essential in setting the business apart from
competitors. 1. Costs and Margins

Before setting prices, thoroughly analyze your production costs, overhead expenses,
Ways to Compete and Types of Marketing Strategies that Works in Pricing and desired profit margins. A clear understanding of your cost structure is essential.

PENETRATION PRICING - This is when a business prices its products or services Common Cost Structures
below market value in order to attract new customers and gain market share. This
strategy can be effective in the short term, but it can be difficult to sustain in the long • Fixed Costs – e.g. rent or lease payments
term if the business is not able to eventually raise prices.
• Variable Costs – e.g. cost of raw materials
DYNAMIC PRICING - This is when a business prices its products or services based on
factors such as demand, supply, and competition. This can be a good way to maximize
profits, but it can also be difficult to implement and manage. 2. Competitive Pricing Analysis

VALUE-BASED PRICING - This is when a business prices its products or services Research your competitors' pricing strategies. Determine how your prices compare to
based on the value that they offer to customers. This can be a more sustainable pricing similar products or services in the market. Competitive analysis helps you position
strategy than penetration pricing, but it requires the business to have a deep your offering effectively. This analysis allows you to not only determine how your
understanding of its customers' needs and wants. prices compare to similar products or services but also to identify potential pricing
gaps or opportunities for differentiation. Moreover, competitive pricing analysis equips
you with the knowledge to fine-tune your pricing strategy, ensuring that your offering
is effectively positioned in the marketplace to meet customer demands while involves a strategic combination of pricing strategies and tactics that allow
maximizing profitability. companies to optimize their pricing decisions.

3. Segment your Audience PRICING VS. PRICE

Recognize that different customer segments may have varying price sensitivities. PRICING
Tailor your pricing strategy to different customer groups to maximize revenue.
- is the broader process that involves determining and setting the price for a
This personalized approach not only maximizes revenue but also enhances customer product or service.
satisfaction and loyalty. Additionally, regularly revisiting and adjusting these - it encompasses various strategies, tactics, and considerations to arrive at
segmented pricing strategies ensures that your offerings remain relevant and the final price that customers will pay.
competitive within each target market, optimizing your overall market positioning and
profitability. PRICE
- denotes the sum a customer must exchange to acquire a product,
Pricing Tactics essentially representing the economic worth of the product or service.
- refers to the actual amount of money a customer is required to pay when
Implement psychological pricing strategies, such as charm pricing (e.g., $9.99 instead purchasing a product or service.
of $10), bundling, or tiered pricing. These tactics can influence consumer perception
and boost conversion rates. Marketing and Pricing Strategies

Research STRATEGY VS TACTIC

• Market Testing
• Competitors Strategy and tactics are two related but distinct concepts often used in the context of
• Influencers planning and execution, whether in business, military operations, sports, or various
other fields.
Regularly Review and Adjust Pricing
In essence, strategy is the broader plan that outlines what you want to achieve and
Pricing is not static. Continuously monitor market conditions, customer feedback, and why, while tactics are the specific, practical actions you take to execute that plan and
competitive dynamics. Be prepared to adjust your prices as needed to remain achieve short-term goals.
competitive and profitable.
PRICING STRATEGIES
One good example to do as a business is conducting a customer satisfaction survey
among clients. Customer feedback plays a pivotal role in shaping pricing strategies. Cost based Pricing Strategy
Soliciting and analyzing customer input allows you to align your pricing with perceived COST-PLUS PRICING - a strategy that adds a small margin or mark-up to the costs
value, addressing pain points, and making necessary adjustments to enhance of producing and distributing the product or service.
customer satisfaction.
Competition based Pricing Strategy
Pricing Mix GOING RATE PRICING - this strategy is a safe way for small businesses to remain
competitive without eating into profits. The strategy means you price your products
• also known as marketing mix price, represents a well-balanced blend of and services close to the market price leader.
"price-related elements" tailored to the specific products and services a
company provides. These elements encompass factors like production Value based Pricing Strategy
costs, pricing determinants, pricing goals, promotional pricing, and other VALUE PRICING - this strategy is based on what customers think a product or
considerations. service is worth, rather than actual costs. The value is determined through market
testing and a price is set based on this value. For example, sometimes customers will
• Price mix is the value of the product determined by the producers. Price mix pay more if it saves them a lot of time. The price reflects this saving.
includes the decisions as to: Price level to be adopted; discount to be
offered; and terms of credit to be allowed to customers. PREMIUM PRICING - this strategy reflects the prestige, luxury or exclusive value of
the products or services you provide. Typically, at a premium price customers have
• The Pricing Mix is critically important for businesses because it directly high expectations of quality, performance and service.
impacts their revenue, profitability, and competitive position in the market. It
Product based Pricing Strategy
PENETRATION PRICING - this strategy provides you the opportunity to set a low
initial price on a new product or service to gain high sales or market share. Once this
point is reached, the prices are increased to normal pricing levels.

SKIMMING PRICING - this strategy sets a high initial price which aims to excite
audiences who desire products or services that are in high demand and are highly
valued. Once the required profits are made, the price is then lowered for a wider
market.

LOSS LEADER PRICING - this strategy aims to attract customers by offering a

product or service at below cost. The strategy hopes that customers will also
purchase other products or services with a higher profit margin.

↓ Supply + ↑ Demand = ↑ Price