Pricing Strategy

Generally speaking, pricing strategy is the process of evaluation and the decision to price any given product or services in a manner that would allow the maximum quantity of sales. The pricing strategy can shape based on many factors including objectives to penetrate general or specific market, target particular budgets or geographic segment, pricing based on competition or lack of, as well as inflecting strategic pain on competitors. Nonetheless, the pricing strategy is and should be a part of overall marketing decisionas well as organizational long term goals.

At World Consulting Group the concept of prestige pricing is utilized. According to the theory of prestige pricing, the goods and services that are either unique or virtually without competition maybe priced at a premium price.  At World Consulting Group we do not believe that we do not have significant competition but we sincerely believe that our services are very unique. Hence deploying the prestige pricing has always been our philosophy.

Some of the reasoning beyond our selection of this particular methodology includes: our rapid response time of four hours or less, continuous education of our associates, broad knowledge of our client industries, availability of executive decision makers to all our clients, pay per performance, no long term contracts, as well as our undisputed track record in vertical as well as horizontal markets are certainly major factors in our decision to use such methodology.

Equally, it is important to point out to potential fall outs of such strategy. The basic assumptions and cultural understandings of price conscious shopper is certainly the most visible argument. Yet it is not the greatest burden; even those price conscious shoppers and decision makers are virtually always those that are reasonable and open to slight increase in cost once they are confronted with comparison of competitors and their respective results.

Ultimately, such strategy may illustrate a rather difficult initial path, yet the efforts and respective impacts are well worth it. However, buyer be aware: not all prestige pricing is based on such extensive time tested practices. It is wise to examine why a particular organization is justified to implement such methodology. 

Marketing and customer satisfaction

The concept of marketing and its potential impact on overall customer satisfaction is certainly a part of overall importance of business. In general terms, marketing and marketing science are significant contributing factors in stimulating customers’ needs and desire by paving the way to act. Hence, it is simply rational to conclude that advanced stipulations based on scientific research and data, are tremendous tools in achieving the ultimate goal of sales.

However, it is equally important to understand potential road bumps that may hinder overall perception of customers, if marketing is the only mean of fine tuning customer satisfaction. It is clear that seeking and marketing to those individual and groups that are predisposed to a positive attitude toward particular product and services, significantly reduces even the possibility of negative feedback. Yet, it also reduced the true nature of general customers’ feedback that would have otherwise contributed to possible improvement and long term results.

Nevertheless, it is naïve to assume that marketing to particular sub set of consumer with positive predisposition to particular goods or services are not important. Such marketing method through marketing segmentations may allow for increase in return on investment, creation of positive cash flow, increasing overall revenue and profitability as well as many other benefits. However, the real question is sustainability as well as long term standing of a commercial institution that needs to be addressed.

Ultimately, any give organization has to achieve a combination of long term and short term goals in order to assure the viability and survivability. Endorsement of marketing segmentations a single strategy will certainly have a negative impact on long term growth and strategic planning and standing of an organization; unless the product or services at hand are so specific that marketing to general public is a mute point.

Such decisions can not and should not be generalized. There are many factors that have to be taken into account before judging and deciding for particular course of actions. Those factors could and should include particular markets, given products, long term growth strategy, short term revenue consideration, as well current and potential future market shares.