Pricing Strategies
Introduction
Pricing is one of the most important elements of the marketing mix, as it is the only element of the marketing mix, which generates a turnover for the organisation. The other 3 elements of the marketing mix are the variable cost for the organisation;Product - It costs to design and produce your products.
Place - It costs to distribute your products.
Promotion - It costs to promote your products.
Price must support the other elements of the marketing mix. Pricing is difficult and must reflect supply and demand relationship. Pricing a product too high or too low could mean lost sales for the organisation.
Pricing Factors
Pricing should take the following factors into account:- Fixed and variable costs
- Competition
- Company objectives
- Proposed positioning strategies
- Target group and willingness to pay
