Pricing Strategy is a core pillar of Marketing and Product Strategy. It is 1 of the 4 Ps of Marketing (also known as the Marketing Mix – Product, Price, Placement, and Promotion). As such, knowing how to properly price your product is extremely important to the commercial success and viability of your product offering. This is even more so during periods of inflation .
Dawgen Global Advisory Team design Pricing Strategy for Companies and individuals which provides an in-depth framework on Pricing Strategy, including Skimming vs. Penetration, Pricing Tactics, Consumer Adoption Curve, Price Curve Analysis, and Price Sensitivity Analysis.
Pricing should be an informed, strategic decision based on data, not a decision made randomly or based on trial-and-error. Dawgen Global Team adopts a Pricing Strategy framework which guide clients to do Pricing correctly.
Formulating the optimal Pricing Strategy involves considering and answering critical pricing questions, such as:
What is the price point to maximize profit?
What is the price point to maximize share?
What is the price point to capture the Early Market?
Pricing Strategy begins with a decision—to skim or to penetrate the market. It is important to understand the concepts, as well the advantages vs. disadvantages, of Price Skimming vs. Penetration Pricing.
Dawgen Global Team of Advisors adopts a 3-phase approach to Pricing when assisting clients :
1. Data Collection – Pricing data is often difficult to gather. Therefore, pricing data may come from a variety of sources.
2. Analysis & Insights – With the gathered pricing data, the next step is to make sense of the numbers. It is critical to document and be rational with any assumptions made.
3. Pricing – The final phase involves setting the final price point.
There is also a detailed discussion on a 5-phase approach to Price Sensitivity Analysis. Price sensitivity is a measurement of how much the price of the product or service affects customers’ willingness to buy the offering.
Need Help?
For effective and practical guidance in developing your pricing strategies ; contact Dawgen Global Advisors at : Email: [email protected] or visit our Website :https://dawgen.globa
