By Mark Stiving, Entrepreneur.com
NEW YORK (Entrepreneur.com) -- When you select a pricing strategy -- that is, decide how you wish to price your products or services -- what is your goal? The first answer that comes to mind may be to maximize profits, but that isn't a good enough answer.
Think about it this way: When your company develops new products or invests in a new marketing campaign, what's the goal? To maximize profits. But that doesn't tell you what types of products to develop or which customers to target or what message to deliver.
Both Ikea and Mercedes want to maximize profits -- and they use very different pricing strategies to do so -- but we don't think of Ikea and Mercedes in terms of their pricing strategies. We think of them in terms of their products and positioning. Ikea is a fun, designer, starter furniture store; Mercedes is a luxury automobile manufacturer.
...
Comments