Price Pricing is one of the most important elements of the marketing mix, as it is the only one of the 4Ps which generates a turnover for the organisation. The remaining 3Ps are costs for the organisation. Pricing should take into account the following factors: costs of producing the product. prices competitors charge, company objectives target group a willingness to pay There are three main pricing strategies an organisation can adopt:
1 Penetration pricing-the organisation low price to increase sets a sales and market share.
2 Skimming pricing the organisation sets initial high price and an then slowly lowers the price to make the product available to a wide market. The objective is to skim profits off the market layer by layer
3 Competition pricing-setting a price in comparison with competitors