TRUTH 42 Pricing: The most dicey element in the marketing mix
Of the four elements of a business’s marketing mix—product, price, promotion, and place (or distribution), price is often the toughest. A business doesn’t want to undercharge for its products and services and leave money on the table, nor does it want to overcharge and drive business away.
The price a company charges for its products and services also sends a clear message to its target market. For example, Oakley positions its sunglasses as innovative, state-of-the art products that are both high quality and visually appealing. This position in the market suggests the premium price that Oakley charges. If Oakley advertised innovative, state-of-the art products but charged ...
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