By Gary Randazzo
The impact of pricing strategies can be critical for the success of new product launches, a company’s image and ultimately a company’s short and long-term success.
REACTING TO THE COMPETITION
I have worked in several industries and found that pricing is often overlooked as a key marketing tool. In many instances pricing is driven by the sales department and is a reaction to the competition. This reaction assumes the competition knows the market better and has a superior marketing strategy.
When reacting to the competition it is important to understand that you are being drawn into a game whereby you play by the competitor’s rules. You are playing their game and changing your strategy. Your hope here is that you can play the game better or that the competitors can’t play their own game very well.
I am reminded of a time where my company was vying for the business of a key customer. The customer was a shrewd negotiator. We understood the valu…