Price and the Strategic Competitive Advantage

The primary job of an organization is to bring in enough revenue not only to survive, but to grow. This is the case with non-profits as well as profits.

Generally, an organization grows best by serving their customer's interests. However, this isn't to say that the customer should drive all operational and strategic choices within the organization, but that the organization should serve their target group of customers best among competing alternatives (determined by the environmental analysis), and relative to whatever the organization's strategic competitive advantage is (as determined through the SWOT analysis).

Not all customers are interested primarily in the lowest price. Also, as anyone in marketing and sales understands, focusing on providing the lowest price is the most difficult way to maintain a competitive position over time. What most customers want is value, rather than low price, and often there are other needs or interests that are more important than price or value, such as image or safety.

Thus, the strategic marketing process. It is up to the marketing group to find out where the gaps are in met versus unmet needs in their target audience, search which environmental factors will impact their marketing, and understand the strategic options available to build the best marketing mix strategies and tactics.