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The Pricing Strategy is a plan for how the organization will set prices for its products or services, and can include a variety of elements, such as the target customer segments, the Value Proposition, the pricing objectives, the pricing methods, and the pricing tactics.

Pricing Strategy is an essential component of the Product Strategy and is one of the 4 Ps (product, pricing, placement, promotion) of the Marketing Mix. Your Pricing Strategy can have a significant impact on the organization's performance and profitability, so it is imperative that your Pricing Strategy is based on empirical analysis and not haphazardly set.

Furthermore, a Pricing Strategy is important for several additional reasons. First, a Pricing Strategy can help organizations align their pricing with their overall business goals and objectives. By defining the target customer segments and the Value Proposition, organizations can ensure that their pricing is well-suited to the needs and preferences of their target customers—and that it supports the organization's overall Corporate Strategy.

A Pricing Strategy can also help organizations manage the risks and uncertainties associated with pricing. By defining the pricing objectives and the pricing methods, organizations can create a framework for making pricing decisions that is consistent, transparent, and well-supported. This can help organizations to avoid making ad-hoc or arbitrary pricing decisions that may not be supported by data or analysis—and that may expose the organization to unnecessary risks.

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