How does a pricing strategy function in the overall marketing plan?

A pricing strategy plays a crucial role in the overall marketing plan as it reflects the company's long-term vision and overall market positioning. By being a long-term approach based on the five C’s of pricing—which are Customer, Cost, Competition, Channel, and Company—it helps in aligning the price with the value perceived by customers, the cost of producing the product or service, the competitive landscape, distribution channels, and internal company objectives.

This integrated approach ensures that pricing decisions support other marketing mix elements, like product development and promotional strategies, allowing for a cohesive branding and positioning effort in the marketplace. As a result, a well-developed pricing strategy can drive customer acquisition and retention while also contributing to profitability, making it an essential component of strategic marketing planning.