Can digital marketing plan pricing disrupt your pricing model? Will it increase the value of the company or bankrupt it? 


Here’s something to think about: more than half of the Fortune 500 companies have either gone out of business or absorbed into another company since 2000. Why?


Much of the blame goes to the introduction of digital business transformation. Companies who have resisted the change are no longer doing business or doing limited business. It’s not a question of if but when and how. Think of companies like Kodak for example.


A company’s reluctance to go digital isn’t about lack of resources but its aversion to risks. When an innovative way to do business is introduced, they adapt immediately. At first, there will be failures, but they can learn from those mistakes and will get better the second time around. Continuous experimentation requires using different methods all at once, removing what’s useless and focusing more on what will work. Having a digital marketing plan pricing is a good place to start.




Companies can hurdle these risks by encouraging its employees to participate in how to improve the company by taking active engagement. They are encouraged to find new ways to increase company value. If they fail, they can learn from those mistakes and better improve to transform the company – be it digital, structural, or process on business performance. Sometimes you need a real challenge to actively improve yourself or your business.


Discussion: The Impact of Digital Marketing Plan Pricing for Online Business


The pricing strategy for online business has entirely disrupted pricing and revenue models that were common in business even just 2-3 years ago. Your customers are more informed now; tech-savvy and have more choices or ability to compare thanks to the internet. Businesses now have no choice but to transform their pricing models to digital marketing plan pricing in maintaining their market and value positioning. Using the old methods to charge a customer may not be the best way to charge them now. To know if you are pricing effectively, you need to explore the most current pricing techniques.


The best online pricing strategies in today’s digital world are worlds away from traditional finance-driven, fixed pricing strategies – like cost-plus or margin-based pricing. It’s also no longer acceptable to review prices annually. The best companies are monitoring their prices daily – and even several times a day if appropriate (this is not appropriate for all businesses).


Dynamic Pricing as part of the Digital Marketing Plan Pricing


As platform businesses continue to take share from the more traditional businesses out there, online pricing strategies and tactics has been introduced to drive profitability. A dynamic pricing approach is agile and which pays close attention to the needs of customers and consumers using micro-segmentation principles.


Not only does this new pricing system track and monitor competitors’ price differentials, it gets real-time data and insights on consumer purchasing behaviour along the buying journey to adjust prices to the point they are happy to buy and buy more frequently. 


Dynamic pricing is one of the preferred approaches businesses are considering to maximise margins when they start their digital marketing plan pricing journey. It looks at a range of variables  – both internal business financials and indicators and external influences – to set the more optimal prices and increase unit sales. Very often businesses are moving to cloud-based pricing software to analyse a series of inputs: wholesale pricing, consumer behaviour, and competitive prices to help AI figure out optimal price points. The prices are then recommended for each product item whether online or through the retail shelves. 


AI pricing is a machine learning pricing algorithm. It can operate non-stop or by specific hourly, daily, or in weekly intervals. When applied effectively, the dynamic pricing algorithm adjusts product prices according to whether the company is aiming for maximum profits or gain market share



To know if a company is transforming its core business proposition, it needs four factors:


  • Having a higher-purpose mission. A noble gesture by the company to give back to the people and say –  help the environment. Removing the stigma that a company is only after profits. Sometimes the right company can make a difference in improving the world and also be profitable.


  • Realigning their core identity to venture into new field markets. Being the top industry leader has some advantages to enter new markets. With its assets like brand name, customer relationships, distribution, and other functions. The brand name gives recognition and trust to the customers knowing they have the best quality whatever services or products they offer in the new field.


  • Taking the initiative to go digital while still flourishing. Companies who took bold steps into the unknown realm of the digital market are rewarded with great profits and revenues. Firms like Amazon and Alibaba took advantage of traditional business hesitation. For example – Argos in the UK – probably could have become an Amazon!


  • Letting go of the past. Companies who become complacent in their current business state are afraid to let go. Thinking that venturing into the unknown would ruin them. Eventually, these companies will become dinosaurs and potentially become extinct. Sometimes, tasking a risk is vital for business success. Mature companies become very risk-averse – vs the entrepreneurial aspect of startups!


Some of the biggest business transformation:


  • Netflix – from online DVD rental to an online movie streaming service. The company believed the future was in the streaming business and started streaming not only previously released movies but also producing original tv and movie series.


When Netflix introduced its Qwikster DVD pricing to the subscribers in 2011. It was a total disaster. As much 800,000 subscribers left Netflix in one day. Another pricing change came in 2017, but this time it was a resounding success. They base the price increase on value-based pricing. They listened to their customers and produced a wide selection of new films for the audience to see.


  • Once upon a time, Fujifilm was in the same precarious situation as Eastman Kodak. With the advent of the digital photo, photographic films became obsolete. The firms went under but interestingly, medical films especially x-ray films are still in demand. So they invested in medical films which then transitioned into a pharmaceutical company and healthcare. They also ventured into the cosmetic business. Fujifilm follows the demand-oriented pricing strategy. Whether the demand is high or low, determines its price. Whether it be the cameras, films or healthcare facilities.


Also the digital businesses as well:


  • Adobe came from a video, document and creative drawing software company to digital experiences, marketing, commerce platforms and analytics while at the same packaging their software to cloud storage and subscription.


  • Alibaba transformed itself from a retail company to a technology business. With the launch of the A100 program wherein, it will be a one-stop-shop for all the for sellers with brand products. Included also in the Alibaba Operating System which features all its technology services Logistics, Payments, Marketing Services, Cloud computing and meta-market businesses. They will also service entertainment, payment gateway, mobile data and gaming.


  • Microsoft has always been synonymous with computer operating systems. They pioneered the operating software to what most computers in the world used today. But due to other operating systems that offer open-source apps, Microsoft has to rethink its business core.


From a software company selling licensed software, computer products and devices to a cloud-based platform-as-a-service business transformation success. Therefore, it is a cloud computing program which an outside provider delivers hardware and software tools to app developers on the internet. The SaaS just provide the infrastructure to conduct the transactions.


The company uses a value-based pricing strategy to entice the buyers to engage which they think is the fair price.


Is Digital Marketing Plan Pricing causing Disruption of Pricing Models?



A good example of Dynamic Pricing in Digital Marketing Plan Pricing is Amazon


An excellent example of a digital business transformation is Amazon. From an online marketplace for books and later expanded to sell electronics, software, video games, apparel, furniture, food, toys, and jewellery. It has become one of the big four technology companies along with Google, Apple, and Facebook


Amazon is not really an actual store nor do they have warehouses storing all those items. What they do is change prices every single day. It averages about 80 million price changes in just one day. Amazon is using an innovative pricing algorithm to predict what prices the competition will set and anticipating what the customers will buy using the past buying data.


They are constantly experimenting to stay ahead of the competition. Such dynamic pricing has no rival as Amazon keeps finding new ways of digital marketing plan pricing strategies. The closest rival they ever have is China’s Alibaba. The huge metadata available to Amazon ensures they can data crunch to optimise and make offers more suitable to individual consumers.


Their secret weapons are convenience and anticipating the next price adjustment. Shopping online has become more convenient for the customers as they don’t have to go outside and anticipating the next price change from the rivals is what keeps Amazon ahead of the game.


They based their pricing strategy on dynamic pricing which the prices constantly changes to compete with other online retailers. Additionally, use third-party resellers to sell their products.


Not bad for a company that survived the first tech .com crash in early 2000s to now offering everything from delivering to online entertainment like Amazon Prime.




  • Business transformation can be a huge risk for companies. Notably, without proper pricing and execution, it will fail at the start. Pricing and pricing strategy needs to be core to the transformation.


  • Venturing into a new world requires good research and the proper pricing strategy. Go in a little at a time to test the waters, so to speak.


  • Pricing teams must adapt to dynamic pricing to compete in the digital marketplace. Market trends change very quickly. To emphasize, it’s better to let go of the past in order to move forward.




  • Reinventing the company’s business core can save them from a disappearing market. A pivot may be required if tech completely disrupts an industry. This is the case of Blockbuster – i.e. pricing changes could not rescue the business, a complete pivot would have been required.


  • Expanding their company into new field markets can attract more customers and increase value.


  • Being an incumbent has great advantages – such as brand and financing. It is much easier for an incumbent name to sell – than for a new startup. The issue is that existing businesses often do not want to accept that the world has changed.


  • Agility is vital – and major businesses are often more like slow-moving cruise ships – when swiftness is required.



If you going through a business transformation at the moment and want to know if your pricing team have the skills, style and capability to monetise the full value of your business model, then download, then download our free pricing guide or e-book now.


Or, feel free to call me on (2) 91994523.


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