Brand Health & Pricing

Brand Health & Pricing

The price is important across the entire Marketing Mix, including the promotion and branding of a product or service. The price sends numerous messages to the customer, all of which is important to how she views the brand, such as the level of quality, the social recognition that comes with owning the product, and the value she will get. Therefore, it is important that the price not only generates short-term profits, but also benefits the long-term brand perception by being aligned with the positioning of the product or service.

Setting a price that supports your positioning is both a function of your competitors’ prices and the willingness to pay for your product or service. When customers compare your product to alternatives, they don’t compare it to all products on the market, but to products that they view as being of fairly similar value. This value is the benchmark that you use to set a higher or lower price, depending on your brand positioning.