Pricing decision the marketing strategy

Answer In terms of the marketing mix some would say that pricing is the least attractive element.

Pricing decision the marketing strategy

The final price for a product may be influenced by many factors which can be categorized into two main groups: Internal Factors — When setting price, marketers must take into consideration several factors which are the result of company decisions and actions.

To a large extent these factors are controllable by the company and, if necessary, can be altered. However, while the organization may have control over these factors making a quick change is not always realistic.

Pricing decision the marketing strategy

For instance, product pricing may depend heavily on the productivity of a manufacturing facility e. But increasing productivity may require major changes at the manufacturing facility that will take time not to mention be costly and will not translate into lower price products for a considerable period of time.

External Factors — There are a number of influencing factors which are not controlled by the company but will impact pricing decisions. Understanding these factors requires the marketer conduct research to monitor what is happening in each market the company serves since the effect of these factors can vary by market.

Pricing decision the marketing strategy

Below we provide a detailed discussion of both internal and external factors."Price decision and management of the price variable is a crucial task, that confronts a marketer. In order to take correct decisions, it is important that he understands the concept and its influence on pricing decisions (Saxena, ).".

The concept provides an overview of Pricing - one of the most important marketing mix decisions. It offers a full description of the six steps which can be used as guidelines for implementing pricing decisions, and also offers well-documented examples.

Hot Topic; Blog; About Us; "Price decision and management of the price variable is a. 1) STP – Marketing mix is the second step in a marketing is because the marketing mix is decided as per the segment and the target you are going to have as well as the positioning you want to achieve.

Thus, the very first thing which affects pricing is not marketing mix, it is segmentation, targeting and positioning. Depending on the .

The pricing decision is a critical one for most marketers, yet the amount of attention given to this key area is often much less than is given to other marketing decisions. One reason for the lack of attention is that many believe price setting is a mechanical process requiring the marketer to utilize financial tools, such as spreadsheets, to.

Develop Marketing Strategy. It is therefore important to give it due importance and allow in depth analyses to become the basic of pricing decisions. Marketing Mix – Pricing.

Define the Right Pricing

Pin Share Pocket. Share. 30 Shares. Share your thoughts and experience. Name* E-mail*. This section of the tutorial on pricing decisions discusses why internal and external factors are important in setting price and pricing decisions.

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