Marketing spend plays a significant role in pricing strategy. It is a key factor in determining the cost of customer acquisition (CAC) and the lifetime value (LTV) of a customer. These metrics are crucial in setting the price of a product. If the marketing spend is high, the product price might need to be higher to cover the costs and ensure profitability. Conversely, if the marketing spend is low, the product price can be lower, potentially attracting more customers.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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