Internal Factors: Marketing Strategy

Marketing strategy concerns the decisions marketers make to help the company satisfy its target market and attain its business and marketing objectives. Price, of course, is one of the key marketing mix decisions and since all marketing mix decisions must work together, the final price will be impacted by how other marketing decisions are made. For instance, marketers selling high-quality products would be expected to price their products in a range that will add to the perception of the product being at a high level.

It should be noted, not all companies view price as a key selling feature and, consequently, it may not play a major role in helping the marketer meet its objectives. Some firms, for example those seeking to be viewed as market leaders in product quality, de-emphasize price and concentrate on a strategy highlighting non-price benefits (e.g., quality, durability, service, etc.). Such non-price competition can help the company avoid competing against new products that sell for a lower price. It can also protect against potential price wars that often break out between competitive firms that follow a market share objective and use price as a key selling feature.