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Pricing strategies (Kotler)

Refine your pricing strategy and understand the value that you offer

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About the pricing strategies template

How do you know if your product is priced competitively? It starts with understanding the pricing landscape within your industry. Kotler's pricing strategy, associated with well-known marketer and professor Philip Kotler, aims to help businesses determine an effective pricing approach.

The idea is to find a balance between maximizing profitability and meeting customer expectations — with an understanding of market demand and what competitors are currently charging. Be sure to keep an eye on competitor pricing changes, promotions, and any value-added services they offer.

Adjust the template to meet your needs and then share with internal stakeholders. Having transparent conversations about pricing strategies and models can help you better understand your product's position in the market. Whether you are positioned as a premium, mid-range, or budget option, clarity in pricing supports this positioning.

Best practices

Determine the best pricing strategy for your products and services.

  1. Understand your market and customers Start by conducting thorough pricing research to understand your target market, customer preferences, purchasing behavior, and willingness to pay. Consider your business goals so you can can align your pricing with your long-term objectives.

  2. Study your competitors Identify your top competitors. For each, evaluate their pricing strategy and position them on the grid based on quality vs. price — ranging from superb value in the top left to rip-off in the bottom right.

  3. Understand your value Gauge the perceived value of your product or service and visualize how your offering stacks up against the competition. Use these insights to determine the right price.

  4. Adjust as needed Regularly review your pricing strategies to remain competitive and profitable in your industry — potentially testing different strategies to see what resonates best with your target audience.

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