Marketing

Pricing Concepts & Strategies

Definition:
Price is the value which organisations place on their goods and/or services when they offer them for exchange. Usually expressed in monetary terms in cash based economies.


Exchange Significance:
1. Important to consumers since have limited resources and must make allocative choices
2. Involves not only financial costs, but also time, travel, psychic costs
3. Important to organisations since must cover their costs and be able to generate a profit


Price Setting:
Does not occur in a vacuum. Marketers must consider both m.mix and external environment

Marketing Mix
Factors to be considered include:
„h how distinctive product attributes are/value placed on them by consumer
„h intangibles as well as tangibles need to be taken into account
„h costs of distribution and promotion need to be included

External Environment
Factors to be consider...