Pricing definition by philip kotler biography

One of the most widely used models of Philip Kotler in the field of strategic planning is Kotler’s Pricing Strategies. The framework examines the different pricing strategies and discusses the importance of understanding the customer’s value perceptions as well as other internal and external factors while setting prices.

What is a price?

First of all, let’s go back to the basics. A price can be defined as the amount of money a customer pays in exchange for a product or service offered by the firm. Yet, price is much more than that. The price of an offering is the value that customers are willing to give in order to gain the benefits of having the product. It therefore indirectly represents how customers value your product or service. Are they willing to pay a little extra for your product in order to have a higher quality product? How price sensitive are they when the price of the offering rises or drops? By examining these questions, you can get a rough idea of how customers pe