Constraints on Pricing Strategy
- Your price makes a statement about your brand. You cannot claim a premium brand and pursue a grow pricing strategy. And a discount brand cannot pursue a skimming strategy.
- Market Following strategies are the most difficult to execute. You have to be in close touch with the market, be able to change prices quickly, and be able to communicate the logic of the price change, and why the price change is in the customer’s interest.
- You can only have one pricing strategy per segment. Even if you have multiple segments you can probably only afford to have one strategy.
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