Introduction to pricing decision, Marketing Management

Introduction to pricing decision:

Pricing is a very critical decision in the marketing management. The main objective of the firm, that is, to earn a profit very much depends upon the correct price decision. After meeting all the costs involved, the sales revenue generated must yield a surplus before there can be profits. The sales revenue figure is however materially affected by the price charged for the product. What price should be changed for the product is a very crucial question. Several factors - economic, social, political, and other factors - influence the pricing decisions. Pricing decision is handled in a variety of ways in the different companies. In the small companies, price decision, is taken by the top management. In some large companies, it may be in the hands of divisional and product line managers but here also top management sets the general pricing policy and objectives. Pricing is a problem in four types of situations:

1.       Where the firms develop or introduces a new product and it is to fix the price of the product for the first time.

2.       When circumstances so developed that lead the firm so consider initialling a price change.

3.       When competition forces the firm to initiate a price change and

4.       When the company produces several products that have interrelated demands and or costs.

Thus the price setting is a very important decision and should be taken very carefully.

Posted Date: 9/19/2012 6:48:46 AM | Location : United States







Related Discussions:- Introduction to pricing decision, Assignment Help, Ask Question on Introduction to pricing decision, Get Answer, Expert's Help, Introduction to pricing decision Discussions

Write discussion on Introduction to pricing decision
Your posts are moderated
Related Questions
Question: You have been asked to attend a Design Workshop, of 200 people, to discuss the main importance of conventional advertising mediums. Being a student of Creative Advert

Nike's use of "sweatshop labor" in Southeast Asia led to a wave of protests against the company in the United States. Not only did this hurt Nike's reputation, but it also adversel

CASE STUDY-  Chubb Security Systems Chubb, an organization noted for its locks and security systems, developed a security product particularly suited to manufacturing organizat

Given the locations of mesh routers and their traffic demands, one can have the network configuration designed A network configuration is called a feasible network configuration (F

The point is a,b let a,b be any point on the graph y= 1/x x cannot equal zero, prove that the area of the triangle formed by the tangent through a,b and the coordinates axes is 2

How does the mobile wallet payment value chain look like? And where in the payment value chain can we place the mobile wallet service?

For this Final Project, imagine that an organisation that owns and manages a brand is experiencing a critical downturn in its business. The organisation needs to expand its brand o

6. Cubic Splines (Matlab) (6 points) (a) Use Matlab to create a regular grid x of data points in the range from 0 to 10 with a grid spacing h = 0:5. Calculate an array y of values

Question 1: (i). What is the aim of direct marketing? (ii). Explain briefly the features of direct marketing. (ii). Outline 4 reasons why direct marketing has beco

How should shoppers Stop develop its demand forecasts?