Pricing Strategy

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Different Types of Pricing Strategy
Pricing is one of the four elements of the marketing mix, along with product, place and promotion. Pricing strategy is important for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies, depending on their own unique marketing goals and objectives.
Premium Pricing
Premium pricing strategy establishes a price higher than the competitors. It 's a strategy that can be effectively used when there is something unique about the product or when the product is first to market and the business has a distinct competitive advantage.
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Another important aspect of your business-plan marketing strategy is personnel. Determine in advance what type of marketing employees you will need to hire. For example, you may have a marketing vice president and director but need to hire an advertising copywriter and product manager. Determine how many copywriters and product managers you will need initially. Decide when you will need to hire additional marketing personnel, based on your sales forecast.
The crux of your business-plan marketing strategy should be focused on sales and advertising. Determine where and how to disperse your sales team. For example, decide in which regions you need sales managers. Consider employing inside sales reps to handle small town or rural markets. Additionally, establish an advertising budget for your company. Decide which types of advertising media you will use to market your products, such as direct mail or radio advertising. Allocate a certain percentage of your budget to each specific advertising media.
Factor the product life cycle of your products into your business-plan marketing strategy. All products go through various stages: Introduction, growth, maturity and decline. Products can become outmoded because of new technology. Project when you expect products to enter the maturity stage, where competition can be fierce. Use your secondary research and competitive analyses to project various
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