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What Role can Marketers Play in Pricing Strategy?

There’s a story behind every price.

This series revisits the basics of branding and marketing by answering questions marketers, entrepreneurs and small business owners face when growing their business. I hope this series provides you with knowledge to think smarter and a nudge to make stuff happen.


What Role can Marketers Play in Pricing Strategy?

Pricing tells a story. There is always a story behind the reasons marketers choose to price a product no matter if the pricing strategy is high or low.

The common story behind many low-priced products is the company buys in bulk and passes on the savings to customers. A valid story, but an uninteresting one.

A more interesting story behind a low-priced product is told by IKEA. Customers get high design AND low prices at IKEA.

When it comes to charging high prices, having a great story is mandatory. The rule of thumb is: the higher the price, the richer the story needs to be.

The role marketers must play in pricing strategy is telling a story to match the price.

Apple is the poster child brand for telling rich stories to match its rich prices. Apple devices are never the cheapest on the market. Thus, Apple must tell a more interesting story in how its devices improve one’s life.

For lower priced products, the story doesn’t need to be all that interesting. (Ahem, Walmart.) But high-priced products must always deliver an interesting story to justify the higher price.


REVISITING THE BASICS | archive

#01 | How Should a Brand be Defined?
#02 | What’s the Difference between Branding and Marketing?
#03 | Is there a Difference between a Company Name and a Brand Name?
#04 | Does every Brand need a Unique Selling Position?
#05 | Do Consumers Really Feel Emotional about Brands?
#06 | How should “Brand Personality” be Described?
#07 | Are Taglines Important? Why or Why Not?
#08 | Are Logos Important? Why or Why Not?
#09 | Can a Brand be Built without a Large Budget?
#10 | Why is a Brand Style Guide important?
#11 | What are Key Components to Include in a Brand Style Guide?
#12 | How Rigid Should a Brand Style Guide Be?
#13 | The Brand Style Guide is Built. Now What?
#14 | What Matters Most to Consumers: Brand, Price, or Convenience?
#15 | Does a Company’s Mission Statement Play a Role in Marketing the Brand?
#16 | How can Business Operations Support the Brand Promise?
#17 | How do you get Employees to “Live the Brand”?
#18 | Do all Marketing Activities need a Strong Call to Action?
#19 | Do Brands need to be Marketed Differently Depending on their Stage of Life?
#20 | What Role does Promotion Play in Effective Marketing?
#21 | How Connected should PR efforts be to Marketing efforts?
#22 | At the Retail Level, What do Effective In-Store Campaigns Look Like?
#23 | How Valuable are Loyalty Programs?
#24 | Is Sampling the Best Way to Drive Trial of a New Product?
#25 | What Role can Marketers Play in Pricing Strategy?

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