07/27/2026
Friday, we talked about the 3 P's. Now we get to the one EVERYBODY will debate.
PRICE
Pricing is the only element of the mix that generates revenue; the others generate costs. It is often "forgotten" because it is viewed strictly as a financial decision rather than a marketing signal of value.
Value-Based Pricing: Instead of simply adding a markup to costs, effective pricing reflects the perceived value to the customer. This allows for healthier margins while delivering what the customer feels is a fair deal.
Psychological Impact: Price sets expectations. A price that is too low can signal poor quality, while a price that is too high without justification creates friction.
Flexibility and Tactics: Unlike product design or distribution networks, price is relatively flexible. Marketers can use tactical pricing (discounts, bundles, credit terms) to react to competitors or stimulate demand at specific funnel stages, provided it doesn't erode long-term brand equity.
Far too often I see products miss their pricing by a country mile. Both over and under. Market research will help us land exactly where we need to be.