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
Which different aspects are covered by Marketing Research? Market Research covers individually the various aspects of marketing of goods, services and concepts with the assist

WV8 is a large not for profit (NFP) public sector organisation responsible for organising the operation of publicly financed schools within its region. WV8 receives its income sole

What are the Consumer Advertisements? Consumer Advertisement: • Consumer durable • Consumer services • TV, Radio, Newspapers, Magazines etc.

Problem 1 (a) The development of inter-organizational relationships is best known through personal selling rather than through exhibitions and trade shows. Explain. Proble

Question 1: (a) Explain in thorough details what is advertising. (b) A standard definition of advertising is said to have five basic components. With particular reference

Advertising management: advertising management involves the major decisions in the management of the advertising. Broadly it includes the following activities: 1.       Settin

What are demands, wants and desires and how do you link these to the marketing process?

QUESTION 1 (a) Explain the term ‘implementation of strategies' and enumerate the eight components of strategic implementation (b) Elaborate on any THREE of the following iss

Question 1: Altering consumer attitudes is a key strategy consideration for most marketers because consumers' attitudes towards a product will influence their buying behavior