Can the Price Of A Product Be A Marketing Weapon?

The pricing strategy of marketing any product is defined as a plan which determines the best (at the time of making) pricing decision. The selling price of products and services represents one of the most important elements in deciding the marketing mix for any product or service as it is the only factor which affects profitability through revenue generation for the business concern.

The other 3 factors – Product, Promotion and Place – all involve cost to the manufacturer. Yet, most of the times, price is the most ignored factor while deciding the marketing mix for any product or service in question.

It is important to understand the importance of the price factor in a marketing mix as it can have major consequences for the business concern. The selling price can be used as a marketing weapon to conquer the minds of the target audience or the consumer. However, it has to be kept in mind that also other factors like branding play a crucial role for success. E.g. a good trade show booth called Messestand in german can have a mjor impact on the perception of the company image.

The most appealing variable in the Price is the flexibility it provides in deciding the marketing mix. Unlike the long durations of time taken in deciding the other marketing mix variables, price can be easily and quickly decided based on costs and profitability desired. Moreover, this flexibility can come handy in adjusting the promotion as per the market needs. A very common example of instant flexibility of the price variable is when a salesperson is in the middle of a sales pitch and calls up the senior person to adjust prices to be able to crack the deal.

The price is also important as it can help you to create the image of your product in the minds of the target audience. Often the consumer forms a certain perception of the product in his / her mind based on the price of the product. Although the price does not affect the purchase decision singularly, it may affect the chances of the product being considered for purchase or not. In cases where the marketer expects the consumer to form such an opinion on the product based on the price, the price becomes the most important marketing decision.

The price variable also comes handy when immediate boost to sales is needed and it is desired to achieve the same through short term promotions. In such cases, usually the firm announces a price discount or a sale to increase the interest levels of the target audience.

Given the above, the price definitely enjoys a top slot in the order of importance amongst the different variables of the marketing mix. However, although the flexibility of the variable may seem easy to adjust as per changing market scenario, at the same time the marketers must guard against the temptation to change the prices too frequently as that may lead the customers to keep expecting the price to fall thereby leading to a decline in chances of immediate purchase.