As one of the four “ Ps ” in the marketing mix, pricing is the only revenue generating element .
Chapter 11 Pricing Decisions. Global pricing is one of the most critical and complex issues in international marketing . Price is the only marketing mix instrument that creates revenues . All other elements entail costs.
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 .
Each of the 5 Ps stands for a different approach to strategy : Plan. Ploy. Pattern. Position. Perspective.
I believe this highlights why the product is the most important aspect of the four P’s of marketing – Product, Price, Place, and Promotion. Without a product, you cannot implement any one of the other three elements of the marketing mix . And great products are easy to market as they serve both a need and want.
Price component of the marketing mix also involves establishing policies regarding credit and discount. The variables that are taken into consideration while fixing prices are demand for the product in question, its cost, actual and likely competition, and government regulation.
The extended marketing mix ( 7P’s ) is the combination of seven elements of marketing that aim to work together to achieve the objectives of a marketing strategy. These 7 elements are: product; price; place; promotion; people; process and physical.
The final phase of a marketing plan’s implementation involves receiving feedback and data to measure effectiveness. Measuring the results of the plan allows the company to directly connect the marketing plan to effective changes and make better marketing choices in the future.
According to Kotler and Armstrong (2009, p. 263) the price is “the amount of money charged for a product or service, or the sum of all the values that customers give up in order to gain the benefit of having or using a product or service.”
Price . The definition of Price according to Philip Kotler is : “ Price is the amount of money charged for a product or service.” Broadly, price is the total amount that being exchange by the customer to obtain a benefit of the product or service owning.
Price is also one of the most flexible marketing mix elements . Unlike product features and channel commitments, prices can be changed quickly. More important, as part of a company’s overall value proposition, price plays a key role in creating customer value and building customer relationships.
– 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.
The place element of the marketing mix is defining how and where the product is being sold. In these days of online purchasing, the place covers both the website and the physical distribution and delivery of the product once purchased.
What is the first thing marketers must do when using value – based pricing ? Assess customer needs and value perceptions. Beyond the nature of the market, demand, and the economy, what other factors in a firm’s external environment must a company consider when setting prices ?