Essay Plan for Marketing - Pricing

What Is Pricing?

- Definition of price (by Kotler) – The amount of money charged for a product or service or the sum of values consumers exchange for the benefits of having or using the product or service.
- Pricing is simply the process of placing a price on a product or service.
- All companies must set prices on their products or services.
- These may come in many forms
- You pay, rent, tuition, doctor’s fee’s, tariff’s, interest, toll, premium, salary, commission, wage, income taxes, etc etc.
- Historically, buyers choice has mainly been affected by price.
- Today, however, the role of non-price factors has become increasingly important and continues to do so.
- Price is the only element in the marketing mix that represents revenue; everything else is grouped into the elements of cost.
- Even though pricing is seen by many companies as the number-one problem faced by marketing executives, it is badly handled and often is ignored and no-longer matches the current...