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Before a product is developed, the marketing strategy is formulated, including target market selection and product positioning. There usually is a tradeoff between product quality and price, so price is a crucial variable in positioning. Due to the inherent tradeoffs between marketing mix elements, pricing will depend on other product, distribution and promotion decisions. All of these key aspects are linked together to assists marketers in implementing a solid marketing program for the product/service. The pricing strategy portion of the marketing plan involves determining how you will price your product or service; the price you charge has to be competitive but still allow you to make a reasonable profit. The keyword here is "reasonable"; but for every product or service there's a limit to how much the consumer is willing to pay. Your pricing strategy needs to take this consumer threshold into accour
As stated in the text, the relationship between price and quantity demanded will surely impact sales; therefore marketers must be well versed in understanding and estimating the demand curve for the product. Price elasticity of demand is inevitable in terms of properly pricing products, inelastic demand indicates that price increases might be feasible. The pricing strategy portion of the marketing plan involves determining how you will price your product or service; the price you charge has to be competitive but still allow you to make a reasonable profit.
What are some examples, of price elasticity of a product/service currently in the marketplace? Your example can be a product or service. Support your example.
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