MEPX
Chapter 8 of 10All chapters
  1. 1What marketing is
  2. 2Positioning
  3. 3Understanding customers
  4. 4Channels
  5. 5Measurement
  6. 6Messaging and copy
  7. 7Brand
  8. 8Pricing as marketing
  9. 9Content and search
  10. 10Ethics and the law

Chapter 8 of 10

Pricing as marketing

A message as well as a number.

What price says

Price signals quality, defines who your customer is, and funds how well you can serve them. It is a positioning decision before it is a finance one.

  • Underpricing is more common and harder to correct than overpricing.
  • Discounting trains customers to wait for the discount.

Structure

Tiers, bundles and free trials change who buys and how much. The middle option is chosen far more often when three are offered, which is a well replicated effect.