In order to set a price, the product or service must be based on the three C’s: customers, corporation and competition. The background of the Kotler Pricing Strategies This makes it clear how important the value/ price of that product is that they want to obtain. Among others questions, they ask themselves do I want to pay a little more for better quality? Do I want to pay less for a lower quality product? What benefits do each of these products offer me?īy identifying the answers to those questions that a potential customer might ask, one can establish basic principles of how customers perceive and evaluate a service or product in their minds before making a purchase. There are some questions that consumers come to ask when they show interest in acquiring a service/product. That is why price is a representation of how that product or service is valued in the eyes of the customers. Price is the value that customers are willing to pay to get what they want, whether out of necessity or luxury. But it is important to identify the added value of the price because apart from having an economic value, it also has a profit value of the product or service delivered. Price is the value of money that a customer or consumer exchanges for a product or service offered by a company. What is price?īeyond the financial status and profitability that a business needs in order to be able to balance the economy with the price it offers, it is necessary to understand more than just profits, assets, costs, among other important concepts in order to survive in the market in the long term. To find out more about Kotler Pricing Strategies, one must remember and keep in mind what price is and why it is vital in the market.
The objective of this theory is to help companies position their products or services in relation to their competitors in the market and to implement the pricing strategy according to the quality that is delivered to the customers. Do you want unlimited ad-free access and templates? Find out more
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