Pricing and Brand Strategy

Gordon Wyner
Marketing News
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Key Takeaways
  • Pricing is the marketing lever with the most immediate and direct business impact. Management decisions to change prices translate into revenue and profit. Pricing also is closely tied to the other elements of brand strategy.
  • Over the last decade, there have been several high-level trends related to price that are core to marketing planning.
  • Marketers shouldn’t assume that all consumers behave the same way with respect to price. They’ll need to understand their target consumers’ orientation to price and shopping, along with needs and behaviors related to the product in question.

Pricing sometimes is considered in isolation from the rest of marketing—for example, as part of the revenue management function—and it may appear that pricing managers can go about their business of finding the “right” price to charge with no regard to the rest of marketing strategy, but experience proves otherwise. Pricing is the marketing lever with the most immediate and direct business impact. Management decisions to change prices translate into revenue and profit. Pricing also is closely tied to the other elements of brand strategy. 

Traditional pricing practice starts from the classical economic notion that volume demand for a product will decline as price increases. This applies to many marketing situations, under the assumption that “everything else is equal.” However, effective brand marketing can give consumers compelling reasons to pay a premium. The reasons can relate to product quality, special ingredients, processes and craftsmanship. Many brands are activated through convincing messages of a storied heritage and legacy. Often, the appeals are to status benefits, even if they are enjoyed only temporarily. ​

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Author Bio:

Gordon Wyner headshot
Gordon Wyner
Gordon Wyner, vice president of client solutions at Millward Brown, is the contributing editor for Marketing News’ Marketing Management thought leadership content.

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