Competition Driven Pricing: A Key Element in Marketing Strategy

The video tutorial discusses the importance of pricing in product strategy, focusing on competition driven pricing. This strategy involves setting prices based on competitors' pricing for similar products. The tutorial emphasizes the role of positioning in pricing decisions, suggesting that higher prices can imply better quality, while lower prices can suggest better value. The essence of competitive pricing is to determine the product's price by considering market competition.

What is one of the key aspects of setting a product's price?

• Considering competitors' prices

• Using random pricing

• Ignoring competitors' prices

• Setting the highest possible price

What does competition driven pricing primarily involve?

• Setting prices based on competitors' pricing

• Setting prices based on customer feedback

• Setting prices based on production costs

• Setting prices based on market trends

How can a product be positioned as a better value?

• By offering discounts

• By matching competitors' prices

• By setting a higher price

• By setting a lower price

What is another term for competition driven pricing?

• Competitive pricing

• Cost-plus pricing

• Dynamic pricing

• Value-based pricing

What should sellers consider when setting prices for similar products?

• The prices of competitors

• The quality of their product

• The demand for their product

• Their own production costs