The Importance of the Package Price of the Marketing Service
- The price of a marketing package indicates a level of service, reputation or expectation. Many times, customers instantly make judgments about the level of service they expect based on price. For example, customers expect a higher level of comprehensive services from a specialty, integrated marketing firm than from a lower-priced regional, boutique ad agency.
- Customers rank the quality of service according to price. If the service marketed offers flexible pricing according to the customers' needs, added value is established with the product or service. Product value can blossom into repeat business if the pricing matches the service.
- Competitors use the package price to gain business and notoriety. A company should always consider how competitive suppliers could affect their long-term pricing strategy. If a company establishes price structures without considering competitors' prices, a costly price war could follow.
- Above all, the package price for the marketing service must be profitable. Companies must consider all the expenses involved in producing the goods and services to determine if they can realize a positive cash flow. The price structure must be fair for both customers and the company.
Build Expectations
Create Value
Competition
Profits
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