Strategic Pricing of Your Products as a Marketing Tool
Unlike what some people might think, marketing is not only about words and colors. In fact, marketing is related to every possible component that has to do with the service or the product.
On the other hand, it is important to mention that the price is not only the simple amount paid by the consumer to buy a good, it goes deeper than that.
Pricing Your Products and Marketing
In a metaphoric way, we could simply say that the price is the favorite part of the selling process to the companies. It is the payback of the efforts made to push the consumer through several steps till he finally decides to purchase. On the other side of the interaction, the price is the less liked step of the process to the consumers. It is referred to as being the level in which they literally have to pay for their pleasures and good times!
All these elements should definitely not be simple definitions. They are all significant tools that should be used with the marketing methods to increase the amount of sold products or services and make great changes.
Furthermore, the price is the element of transaction happening between the companies and their clients. As mentioned before, we are talking about the payback of all the efforts made by the companies and the paying factor for the clients that enable them to get whatever product or service they want, according to their financial situation.
Also, it is important to underline the fact that prices differ according to the market target. Indeed, the companies that are interested by attracting the majority of the normal social class put average prices on their products. These prices appear convenient to the buyers and therefore the selling process gets easier. In fact, in some cases, the price could be seen as a stopping element that might chase away the potential clients when they are two feet away from purchasing. The price is a very significant element and should be consequently well measured.
Moreover, in some other cases, the high prices could be seen as a scream of quality. In fact, some people believe that the products with the higher quality have the higher prices. This same logic makes these people think that the low or average prices are a sign of a lack of quality and therefore, these people will buy easier expensive things.
It is important to underline the fact that the prices vary also according to the nature of the products. It is the case with women when it comes to cosmetics. It is also the case with the parents when it comes to their children’s food. People would not buy meaningful products at low prices; they will feel more comfortable buying expensive ones. It is a matter of comfort and ease, and it is at this level that marketing acts the most.
Giving prices to products is certainly a marketing tool. It is the only member of the marketing mix family that generates money instead of spending it. Consequently, it should be well managed.