Pricing Strategy. AI. A Marketer's Best Friend?

Part 4 - How AI will impact the CMO's ability to control 'the market'.

Of the original 4Ps of marketing, Pricing is perhaps the most technically challenging. Pricing strategy can also be the biggest test of nerve and resolve, especially in the face of competition.

The word Price means value. The ‘art’ of marketing is to communicate the value added to a product or service over and above the raw inputs. There is a lot of subjective reasoning involved and there is also a lot of opportunity for manipulation and arbitrage.

Using AI to apply pricing strategies is not new - the travel industry has used ‘dynamic pricing for decades’, but how does AI’s near perfect knowledge of the market change the way marketers use pricing as a strategy? Can AI’s put a value on something over and above the sum of the costs?