Price also plays an important; role in positioning a product or service. Customer reaction to alternative prices, the, cost of the product, the prices of the competition, and various legal and ethical' factors establish the extent of flexibility management has in setting prices.

Price strategy involves choosing the role of price in the positioning strategy; including the desired positioning-of the product or brand as well as the margins necessary to satisfy and motivate distribution channel participants.

Price may be used as an active (visible) component of marketing strategy; or, instead, marketing emphasis may be on "other marketing mix components (e.g., product quality)