Price is important to marketers because it represents marketers ‘ assessment of the value customers see in the product or service and are willing to pay for a product or service. Both a price that is too high and one that is too low can limit growth. The wrong price can also negatively influence sales and cash flow.
Pricing factors are manufacturing cost, market place, competition, market condition, quality of product.
Price : refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply – demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan.
Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexible marketing mix elements .
The product is the most important element of the marketing mix . Developing a total marketing programme involve the marketing manager arming himself with the 4p’s of the marketing mix , i.e. product , place (distribution), pricing, and promotion.
The 3 Most Effective Pricing Strategies Penetration Pricing . Penetration pricing is a pricing concept that sets the mentality of “low cost and dependable quality equals high demand”. Image Pricing. Price Skimming .
Apart from the four basic pricing strategies — premium, skimming , economy or value and penetration — there can be several other variations on these. A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form.
Price ( Mix ): The combination of different ‘ price related variables’ chosen by a firm to fix the price of its product is called Price Mix . Price related variables include pricing objectives, cost of product, competitor’s price , profit margin etc. Price is the amount of money customers have to pay to obtain the product.
Pricing is important since it defines the value that your product are worth for you to make and for your customers to use. It is the tangible price point to let customers know whether it is worth their time and investment. Your pricing strategies could shape your overall profitability for the future.
These 7 elements are: product; price ; place; promotion ; people ; process and physical.
Simplest Way to Price : Cost -Plus Pricing . This is the most common way to price your product easily. You simply get the total of all costs of producing one unit of your product or service. What should be included in the cost of your product?
– For marketing to occur, at least four factors are required: (1) two or more parties (individuals or organizations) with unsatisfied needs, (2) a desire and ability on their part to have their needs satisfied, (3) a way for the parties to communicate, and (4) something to exchange.
ADVERTISEMENTS: Seven elements used in marketing mix for service are as follows: (1) Product (2) Price (3) Place (4) Promotion (5) People (6) Physical evidence (7) Process . The marketing concept dictates that marketing decisions should be based upon customer needs and wants.
selling, public relations , and sales promotion. Marketing strategies can include all of or a mix of these possible elements. Advertising: Advertising is non-personal in nature and is designed to target a specific audience through various mediums.