The roles of pricing decisions in the marketing mix1

Apuntes

The roles of pricing decisions in the marketing mix: ● Companies have to be really careful when pricing ● If a product has a high price but its packaging looks cheap consumers may not want to but it ● Usually, prices have to be similar to their competitors so as to be in the market ● Others have high prices because they are meant for an exclusive group of the society Prices strategies: ● A branded product can be easily recognized as it usually has a big name and brand, and it ́s directed to a certain part of the market. ● Choosing the price for a product is extremely important, as some brands are famous because of their prices ● Price not only depends on the demand and supply of the market, the producer has power to decide it ● Business have to check often the prices of their competitors to maintain competitive ● When a company has new pricing strategies, it can be for some reasons; entering a new market, increasing its popularity, having better numbers, checking the balance between covered costs and profits. ● The strategy used depends on the objective of the company ● The price of the product may be higher or lower than of the production ● The price can vary depending how much th...