Understand that only 20 percent of purchasers buy on price alone. With that in mind, smart marketers will build tangible and definable value into their product or service. Anticipate exceptions to the rule . Long-distance phone service comes to mind. Competitive pricing can also be an important element in enticing brand-switching in those categories that demand added effort or labor on the part of the consumer.
Low pricing can often be the best element in forcing the bang.
Tie price to strategy . Long-term business and marketing strategy must ultimately dictate the pricing approach. If capturing market share is a priority, aggressive pricing makes sense. However, if maximizing profitability is more important, higher price and higher margin becomes the preferable alternative. Apple Computer, for example, deliberately traded market share for higher margin for most of its life, in contrast to Oracle Corp., which heavily dealt on price to maintain dominant market share and double revenue annually, as a precursor to going public.