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reject this if there is not enough added value. If the price is too low, then
the goods may be seen as inferior. Nike attempted this strategy in China

and introduced a low cost trainer to appeal to price conscious consumers.
This was a disaster for Nike, as it diminished the brand value and
consumers did not appreciate this strategy (Fonda and Gough, 2005). As

a consequence, the training shoes were withdrawn and the differentiation
strategy pursued with a vengeance. On the other hand, Hong Kong

Disneyland was seen as far too expensive for the family market which had
demand implications and saw a decline in sales compared to Ocean Park
whose pricing strategy is more favourable to the family market.

9.9 Price and positioning strategies

As with any element of the marketing mix, it is necessary to analyse and

take into consideration the environment and markets in which the
company operates. As stated previously, considerations need to be made

with regards to the company objectives, the product/service (whether it is
an existing or new product), market considerations such as demand, price
sensitivity or price insensitivity and competitor strategies as well as

environmental considerations such as how important is social
responsibility over short-term profits and sales (Doole and Lowe, 2008).

This needs to carefully analysed because if the price and position is not
right in relation to consumer perceptions then the product or service is
more likely to fail in international markets. When organisations enter new

international markets, it is necessary that the right positioning strategy is
determined as this has a direct impact on the price as well as the marketing

mix. Positioning is crucial and when it is at the high end of the market,
there needs to be a justification for the higher price. Marketing a unique
selling point (USP) is critical to justify a higher price as consumers need

something of ‘value’ with that exchange. A unique selling point could be
the quality, technology, the brand values, the product attributes or the

associations attached to a high quality brand such as marketing the
product as a ‘lifestyle’ brand such as the Apple iPad, Mac, iPod or iPhone.

Environmental influences also need to be considered such as green

issues and whether this is important to the market and the country under