Setting the Price
A firm must set a price for the first time when it develops a new product, when it introduces its regular product into a new distribution channel or geographic area, and when it enters bids on new contract work. The firm must decide where to position its product on quality and price.18
Most markets have three to five price points or tiers. Marriott Hotels is good at developing different brands or variations of brands for different price points: JW Marriott (highest price), Marriott Marquis (high price), Marriott (high-medium price), Renaissance (medium-high price), Courtyard (medium price), TownePlace Suites (medium-low price), and Fairfield Inn (low price). Firms devise their branding strategies to help convey to consumers ...
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