Subjects

Business

Explore Business
Search
Business blog

Q&A - What is the difference between pricing strategies & tactics?

Pricing is a very powerful weapon in marketing, but there are many different ways to use it to help achieve marketing objectives. It is important to make a distinction between pricing strategies and pricing tactics.

Pricing Strategies
These are adopted over the medium to long term to achieve marketing objectives They have a significant impact on marketing strategy.

Pricing Tactics
These are adopted in the short run to suit particular situations.

Tactics have only limited impact beyond short-term sales of the product itself.  It may also be that the pricing strategies a business can implement are constrained by the competitive position of the business. 

It is often said that there are four categories of position a business can find itself in which influence the control it has over pricing:

Price takers - A business has no option but to charge the ruling market price

Price makers - The business has a strong enough competitive position to be able to fix its own price – either higher or lower than the competition

Price leaders - Market leaders whose market share is so strong that its price changes are closely followed (and often copied) by rivals

Price followers - A business that just follows the price-changing lead of the market leader (ignoring the rest of the competition)

Featured
CPD courses

WOW! Business 2015

WOW! Business 2015, tutor2u's resource packed CPD for ALL business teachers, provides delegates with a brand new set of teaching resources and effective approaches that can be used immediately within the classroom. Not to be missed!

Learn more ›

Teaching & learning products

AQA BUSS1 Revision Guide

Our 20 page quick revision guide to all the key topics for AQA AS Business Studies Unit 1 (BUSS1). Enables students to cover the all the essential knowledge quickly. Also includes extensive advice on applying the theory to the BUSS1 exam studies.

£4.00

AQA A Level Business Year 1 (AS) Practice Exam Papers

This resource comprises two practice exam papers (with supporting mark schemes) for each of the two Year 1 (AS) papers. The format of each practice exam paper follows precisely the format of the specimen assessment materials issued by the board that have been accredited by Ofqual.

£75.00

Close

Business