Part 1. Marketing Strategy
Published Online: 15 DEC 2010
Copyright © 2011 John Wiley & Sons, Ltd. All rights reserved.
Wiley International Encyclopedia of Marketing
How to Cite
Venkatesh, R. 2010. Pricing Strategy. Wiley International Encyclopedia of Marketing. 1.
- Published Online: 15 DEC 2010
Pricing is that element of a firm's marketing mix focused on generating value to the firm in the form of revenues. This article takes a broad yet introductory look at pricing strategy. Starting with guidelines on how to set the initial price of a product, the article moves on to the discussion of (i) how the price should be varied over the product's life cycle, (ii) why and how prices should be varied across segments of the market, (iii) how to understand, preempt, or respond to competitors' price changes, and (iv) how to price a portfolio of complements or substitutes. The pricing opportunities and challenges arising out of the Internet are briefly discussed. Pricing illustrations and strategic implications are provided throughout. The article concludes with a possible road map for exploring the domain of pricing in greater depth.
- value pricing;
- price discrimination;
- price competition;