Setting the right price for a product is a crucial part of a marketing strategy. Price helps to establish a product’s position in the mind of the consumer and can differentiate a product from its competition. Several decisions in the marketing plan will be affected by the pricing strategy that is selected. To assist you in relating the information in this chapter to the development of your marketing plan, focus on the following:

1. Discuss each of the seven pricing objectives. Which pricing objectives will you use for your product?

Consider the product life cycle, competition, and product positioning for your target market during your discussion.

2. Review the various types of pricing strategies.

Which of these is the most appropriate for your product?

3. Select a basis for pricing your product (cost, demand,

and/or competition). How will you know when it is time to revise your pricing strategy?