Price /Pricing of a Product

This is the amount of money charged for a good or service. This is the sum of value consumers exchange for the benefit of having or using a good or service. This is the market value of a product as it is offered in market.

FACTORS AFFECTING PRICING DECISIONS/FACTORS TO CONSIDER WHEN PRICING

  1. Marketing objectives – a marketer must consider the marketing mix in terms of product design, distribution and promotion in order to form a consistent and effective marketing programs
  2. Cost – consider the cost of production, cost of distribution and marketing expenses.
  3. Profit maximization – the management must consider profits expected before setting the final price.
  4. Organizational considerations – prices must always be set by management rather than by the marketing department/sales department.
  5. Market and demand for the product – a marketer must understand the relationship between price and demand for the product (factors affecting demand).
  6. Environmental elements – prices must take into consideration the existing competitors prices.
  7. Prices of substitute goods
  8. Intermediaries demands
  9. Suppliers – if an organization suppliers notice that prices of an organization products are rising, they may seek a rise in price of their supplies(inputs) to that organization
  10. Inflationary conditions prevailing in the country
  11. Income effects of the consumers.



(Visited 102 times, 1 visits today)

Leave a Reply

Your email address will not be published.