What the Marketing Director Needs to Know About Pricing Strategy

Marketing Directors are often challenged with the need to develop a pricing strategy that aligns with brand positioning and equity while navigating conflicting objectives of the sales team who may want to discount the brand.

Some of the key challenges that may present, are as follows:

Balancing brand equity and sales objectives:

The Marketing Director must balance the desire to maintain the brand’s premium image and generate sales. The sales team may push for discounts or lower prices to meet sales targets, damaging the brand’s reputation and eroding brand equity.

Understanding customer behaviour and perception:

The Marketing Director needs to know how customers perceive the brand and how price impacts their purchase decisions. Pricing too high may lead to lower sales, while pricing too low may lead customers to question the brand’s quality and value.

Analysing competitor pricing strategies:

The Marketing Director needs to analyse competitors’ pricing strategies to determine how to position the brand’s pricing. If competitors offer lower prices, the Marketing Director may consider offering discounts or other promotions to remain competitive.

Ensuring consistency across channels:

The Marketing Director needs to ensure the pricing strategy is consistent across all channels, including online and offline sales, to avoid confusion and maintain brand integrity.

Communicating the pricing strategy:

The Marketing Director must communicate it to the sales team to ensure they understand the brand’s pricing objectives and are equipped to sell it at the appropriate price point.

In summary, developing a pricing strategy that aligns with brand positioning and brand equity while satisfying the sales team’s objectives is a complex challenge that requires careful consideration of customer behaviour and perception, competitor pricing strategies, and consistent communication across all channels.

A Marketing Director can achieve the goals of aligning with sales on the right go-to-market approach to balance short-term year sales revenue targets with long-term brand equity strategy. Pricing University helps sales and marketing teams better understand customer pain points, product positioning in the market, and pricing strategy.