Pricing Strategies

A core pillar to marketing strategy is pricing.  Pricing strategy is a complex science relying on both quantitative and qualitative analysis.  It involves looking at such areas as customer price sensitivity, game theory (when evaluating how competition will react to pricing changes), regulatory restrictions, price curves, product adoption lifecycle (similarly, consumer adoption curve), and industry forces.

In fact, different industries historically adopt different pricing strategies, as these are driven by different levers and constraints.  A simple example is you can’t adopt the same pricing thinking when looking at a commoditized product versus a new disruptive product.  Below, we have gathered a break down of pricing strategies by industry vertical.  These links lead to an external business framework to pricing strategy, which includes a sample Excel pricing model.

Industry Vertical Pricing Strategies