OPrice is only one element of the company’s broader marketing strategy. Thus, before setting
price, the company must decide on its overall marketing strategy for the product or service.
If the company has selected its target market and positioning carefully, then its marketing
mix strategy, including price, will be fairly straightforward. For example, when Honda developed
its Acura brand to compete with European luxury-performance cars in the higherincome
segment, this required charging a high price. In contrast, when it introduced the
Honda Fit model—billed as “a pint-sized fuel miser with feisty giddy up”—this positioning
required charging a low price. Thus, pricing strategy is largely determined by decisions on
market positioning