Marketing Pricing Of Retail Industry Essay

Prices in a market economy are very important. Price allows us to give out goods appropriately to those who are able to pay.

Pricing is one of the most important elements of the marketing mix for the MARC. It is the only one of the components that generates revenue, while promotion, place, and product generate cost. Producing, designing, distributing, and promoting products come with expenses.

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

Pricing is the most important aspect of the marketing mix. Price is the only element of the marketing mix, which produces a turnover for the organization. Pricing plays a crucial role in the product consumption. Pricing products too high or low results in loss of sales for the company. The pricing of each organization based on its corporative objective.

As an extremely important decision for a company, pricing is the only element of the marketing mix that generates revenue. The positioning of a product in the market is dependent on its pricing since customers tend to greatly resist attempts to change price once it has been set up. As compared to other elements in the marketing mix, price is the variable with which a competitive response can be quickly implemented. On the contrary, distribution basically involves the process of getting the product from the manufacturer to the intended consumer.

something else. A business can use a variety of pricing strategies. The price can be set to maximize profitability Businesses may benefit from lowering or raising prices. Pricing depends on the needs and behavior of customers. Business need to find what pricing will make them successful business.

This paper is to explain some of the role in the Pricing Strategies and the Marketing Channels

Today’s highly competitive business world forces companies to create different tactics and relatively rely on multiple pricing strategies to conduct business.

Very often during the preparing of marketing plan the process of pricing is not on the top. But the price has big influence on marketing decisions and its efficiency. Speedily made decisions about the price without any researches and analysis can lead to the company’s losing revenue.

Even though, there has been considerable diversity in the past modelling efforts, there are noticeable patterns of the models’ objectives and variables taken into account (Monroe and Mazumdar, 1988). The pricing models can be broadly classified into six groups (Monroe and Mazumdar, 1988): (1) single-period pricing models (2) dynamic pricing models (3) price promotion and discount models (4) product line pricing (5) price and other marketing-mix variables and (6) price and individual choices.

Numerous price approaches can be seen all over the place in the contemporary society. Whenever we switch on the TV, look from side to side a newspaper, or take note to the radio advertisements, diverse price strategies straight away jump into our view. These comprise the Internet, mailboxes, and many more. Advertisements offer us with up-to-date information concerning the latest products as well as are a good way to bring in products and help manufactures to endorse their new products. The objective of advertisement is to power people to perceive their products.

Price interacts with all other elements of the marketing mix to determine the effectiveness of each and of the whole. The objectives that guide pricing strategy should be a subset of the objectives that guide overall marketing strategy. Thus, it is probably wrong to view price as an independent element of marketing strategy or to assert that price, by itself, is a central element in the marketing mix.” (Webster, 1979)

Pricing is one of the most important elements of the marketing mix as it is the only mix, which generates a turnover for the organization; the remaining 3p's are the variable cost for the organization. It costs to produce and design a product; it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship (Constantinides, 2006). Pricing a product too high or too low could mean a loss of sales for the organization. Pricing should take into account the following factors:

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).

There are a number of factors to be taken into consideration when setting a price for a product or service. Some of these factors are internal, meaning that they are influenced by the company’s objectives and their organizational structures. Other factors are external, meaning they are shaped by the company’s competitors, the condition of the market, and consumer demand. While it is important to address all of the factors that weigh on pricing decisions, it is wise to pay special attention to the external factors. The reason for this being, that external factors are usually precarious in nature. Often, external factors are only managed by adjusting to the circumstances precipitated by these factors. This could mean either increasing or decreasing your pricing. The pricing modification can either be a permanent change, or one existing for an established period of time.