pricing products

4422 Words Oct 20th, 2014 18 Pages
Pricing productsIntroduction Products and services have a price just as they have a value. Many non-profit and all profit-making organizations must also set prices. Pricing is controversial and goes by many names: Price is all around us. You pay rent for your apartment, tuition for your education. The airline, railway, taxi and bus companies charge you a/are; the local utilities call their price a rate; and the local bank charges you interest for the money you borrow ; the guest lecturer charges an honorarium to tell you about a government official who took a bribe to help a shady character steal dues collected by a trade association. Clubs or societies to which you belong may make a special …show more content…
A restaurant may set low prices to prevent competition from catering market or set price to prevent competitive from catering the market or set price at the same level as its competition to stabilize the market fast food restaurants may reduce prices temporarily to create excitement for new product prices temporarily to create excitement for new product or draw more customers into a restaurant.
2. Marketing mix strategy: pricing must be coordinated with product design, distribution and promotion decisions to form a consistent and effective marketing program. Decisions made for other marketing mix variables may affect pricing decisions. Thus, the marketer must consider the total marketing mix when setting prices. If the product is positioned on non-price factors, then decisions about quality, promotion and distribution will strongly affect price. If price is a crucial positioning factor, then price will strongly affect decisions made about the other marketing-mix elements. In most cases, the company will consider
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