Pricing and factors influencing pricing, Marketing Management

Q. Describe briefly the concept of pricing and the factors that influence pricing.

Ans.:  Price is all around us. We pay rent for our apartment, tuition for our, railways, education, buses charge, airline you a  fare,  local  bank  charge  interest for  the money a fee to your doctor etc. therefore price is not just a number on a tag or an item.Traditionally, price has been the main determinant of a buyer's option and it is the only element in the marketing mix that produces revenue. Costing acquires its significance on account of yet another factor. It is a highly risky decision area and mistakes in costing seriously affect the firm, its, growth, profits & future.

Factors Influencing Pricing: There are internal along with external factors that affect pricing:-

Internal Factors:

  1.   The image sought by the firm throughout pricing             
  2.   Marketing and Corporate objectives of the firm.                
  3.   Price elasticity of demand of that particular product.
  4.   The feature of the product
  5.   Use pattern and turnaround rate of the product. charge of manufacturing & marketing.
  6.   Various Stage of product in its life cycle.
  7.   Other fundamentals of the marketing mix and their interaction with pricing
  8.   Extent of differentiation practiced
  9.   Composition of the product line of the particular firm.

External Factors:

  1.   purchaser behavior in respect of the product
  2.   Market characteristics (relative to customer, demand & competition)
  3.   Bargaining power of chief suppliers
  4.   Bargaining power of chief customers
  5.   Government controls and regulation on pricing
  6.   Competitor's pricing policy
  7.   Societal consideration.
  8.   Other relevant legal aspects.
Posted Date: 10/15/2012 4:27:29 AM | Location : United States







Related Discussions:- Pricing and factors influencing pricing, Assignment Help, Ask Question on Pricing and factors influencing pricing, Get Answer, Expert's Help, Pricing and factors influencing pricing Discussions

Write discussion on Pricing and factors influencing pricing
Your posts are moderated
Related Questions
Gathering data depends on nature of data, objective of the data collection and require information. By the help of proposed a new information system the objective is to collect

Based on a selected company, a student is required to conduct a systemic and detailed marketing plan of a new product offering. The effects of global warming are with us now. E

What is internal marketing? Internal Marketing: Holistic marketing includes internal marketing, making sure that everyone into the organization embraces suitable marketing

Q.   Describe various stages in New Product Development. O R Describe the steps in NPD process. Ans.:   The many stages in NPD are:- (1)   G enerating  Ne

As the opening vignette indicates, The Mayo clinic has been built as one of the most powerful services brands on its firmly held belief and focus on the experience of the patient.

Developing a promotion mix is contingent on many factors, including the type of product and the product''s attributes. Which of the four promotional methods-advertising, personal s

A new technology mobile which get auto charge while using.

what are the various attributes a buyer will expect on consumer goods and why do companies offer different products for different customers? explain with the theories involved in i

Question 1 "Negotiation is a powerful method for resolving conflict which needs skill, and experience. Negotiation will be viewed as either hard or soft. It will be a positi

Consumer Behaviour       Consumer buying behaviour refers to the buying behaviour of final consumer's individuals and households who buy goods and services for personal consump