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Price setting and market positioning

Need about 150 words to get me started answering this marketing question

In a statement, 'price-setting is obviously not a one-time event - it is a process - a process that is closely tied to market positioning.'

Discuss if/when/how an employer adjusts pricing to position the company more favorably in the marketplace.

What are the motivators for these adjustments (business drop-off, competitive threats, etc.)? To what extent (and through what forums) do the departments within a company interact in the price dialogue?

Also, offer an additional pricing opportunity that could be (at least temporarily) introduced to enhance your market position.

Solution Preview

If an employer feels that adjusting the price of a product or service would more favorably position the business in the marketplace, then they should. If an employer feels that their brand is not capturing the business that they had hoped, it may be due to the "newness" of the business in the market or could be because of the pricing. Other competitors may have more affordable prices. Once a company has more repeat customers, they can then determine whether their pricing should adjust again. A company should consider ...

Solution Summary

This solution provides information on price setting.