Equine Science-Marketing Mix (price)

Price is the second element of the marketing mix.  It is the only element of the marketing mix that will generate money-all the other elements generate costs. 

Developing a pricing strategy
There are seven steps to develping a pricing strategy.  These are:

1. Assess price competitiveness-are we aware of how customers perceive our competitors.  Which competitors are seeing to offer the best value.  How do customers determine value? Through market reserach we need to determine what factors within or product or service offering customers value and what weight customers attach to each of those factors. 
2. Set pricing objectives-what are companies pricing objectives-is it survival, to gain maximum market share, to skim the market etc.
3. Strategy focus
4. Target market segment
5. Evaluate competitive strategies
6. Measure value to customer
7. Product line pricing
8. Select price

When companie are deciding to use price promtions they need to be aware of the following factors:

1. Customers buy for inventory when price promotions are present
2. There may be cases where demand outsrips supply
3. May impact on brand image
4. Hidden costs

There may also be instances where the price may need to be adapted

• Geographical pricing
• Price discounts and allowances
• Differentiated pricing
• Price discrimination