Pricing Factors
Pricing should take into account the following factors into account:
1. Fixed and variable costs.
2. Competition.
3. Company objectives.
4. Proposed positioning strategies.
5. Target group and willingness to pay
3) What are your pricing strategies? What are the advantages? Explain.
Pricing is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization. The remaining 3p’s are the variable cost for the organization. It costs to produce and design a product, it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship. Pricing a product too high or too low could mean a loss of sales for the organization.