Which section of a business plan outlines pricing strategy?

The pricing strategy is most appropriately detailed in the Marketing Plan section of a business plan. This section is crucial because it not only defines how a business will position its products or services in the market but also how it plans to attract and retain customers through its pricing mechanisms.

In the Marketing Plan, factors such as target market characteristics, competitive pricing analysis, and promotional strategies are considered. A well-defined pricing strategy is essential for helping the business achieve its marketing objectives, understand consumer behavior, and respond to market demands effectively.

While the other sections, such as the Production Plan, Costings and Finance, and Market Analysis, provide important information relevant to the overall business operation, they do not focus primarily on how pricing will be leveraged as a tool within the marketing and sales strategy. In short, the Marketing Plan is where the pricing strategy is articulated in relation to customer value, competition, and market dynamics.