The price level of a competitor's product can greatly influence our pricing strategy. If a competitor's product is priced lower, we may need to consider lowering our price or justifying our higher price with additional features or better quality. If a competitor's product is priced higher, we may have an opportunity to capture more market share by offering a similar product at a lower price. The competitor's price level can also give us insight into their pricing strategy, which can help us position our product effectively in the market.
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Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes the top pricing tools to evaluate cost, feature,...
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The first pricing strategy to assess is competition-based pricing. On the Competitor comparison tab, we can check our phone's price against the competition with two competitive landscapes: a Competitor perceptual map and a Kotler's matrix. Fill out the competiton's price-point below, along with their perceived product quality and price level and estimate for annual units sold. Each product is now placed on the perceptual map, where bubble size indicates each competitor's market share, and Kotler's matrix, which defines each competitor's pricing strategy.
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