In marketing, understanding your business environment is a fundamental hallmark of most business classes. This is sometimes known as the 3Cs: Customer, Competitor, and Company (a corporation in some textbooks). As a leader (or so you’re taught), you think long and hard to then analyze the 4Ps: Product, Promotion (Communication), Price, and Place (Distribution).
Essentially (it’s really not that simple), you determine which knobs (or Ps to turn) to drive results and shareholder value. Mileage may vary.
Of these tools, Price is probably the easiest to change. However, customer perception of pricing takes considerable time and effort to have anything happen in a meaningful manner. And sometimes it takes a significant amount of money to alter. Be wary.
- A close-up view of the change jar – everyone should have one near the backdoor of the garage. It’s easy to lose loose change; yet, a coin or two daily can go far even in a cashless society.
Great point. Pricing is often underestimated and carries substantially more importance than it is given. A lot of consumer psychology analysis should go into setting a price.