pricing strategies
What makes marketing management a suitable career path for those with an international business degree?
Marketing management aligns perfectly with an international business degree because it requires understanding cultural differences in consumer behavior across countries. Marketing managers must analyze regional needs, cultural sensitivities, and develop appropriate pricing strategies for different markets. In the US, consumers spend money relatively freely, while in other countries people may only purchase necessities. This role demands the ability to assess market readiness for products and understand global marketing trends. With an attractive average salary of $135,000 and 6% job growth (faster than average), this career offers both financial rewards and engaging cross-cultural challenges.
Watch clip answer (01:12m)
Shane Hummus
04:13 - 05:25
How do you figure out that first price for a product?
Determining an initial price often depends on the product itself, but emotional factors play a significant role in pricing strategy. Jason Fried explains that his company simply asks, "What's fair?" rather than conducting extensive research. There are pricing theories and "magic numbers" in marketing, but brands like Walmart use specific pricing patterns (like ending prices with .98 instead of .99) to signal value commitments to customers. The most important thing is putting some price on your product, even if it's too low initially. You can always raise prices later while grandfathering in early customers. Pricing decisions reflect your brand positioning and communicate value to customers - whether it's Amazon Prime choosing $79 instead of $99 because it "felt right," or Walmart's precise pricing to signal they're working hard to save customers money.
Watch clip answer (01:35m)
Tech co
01:12:38 - 01:14:14
Why is clear and fair pricing important for businesses?
Clear pricing is essential because customers should understand what they're paying without needing advanced mathematics. Data shows that 69% of consumers would leave a company due to confusing pricing structures. Blockbuster's downfall illustrates this principle - their "extended viewing fee" (late fee) was widely perceived by customers as unfair and greedy, becoming one of the most cited complaints about the company. When designing pricing, businesses should evaluate whether each charge feels reasonable and fair from the customer's perspective, ensuring both proportional value and consistent pricing across similar customer segments.
Watch clip answer (03:09m)
HubSpot Marketing
01:21:19 - 01:24:28