Marketing Prez

ttin 4 PS We arrest heard from Shella that price is the to the highest step level important component of the grocery meld. But why??? financial value is the still marketing- liquify inconstant quantity that earns revenue. All the other marketing-mix elements product, government agency and forwarding generate only costs. The product might be perfectly designed, efficiently distributed and closely promoted but solely these do non matter unless(prenominal) price covers all the costs It is, in that respectfore important that managers escort how to set prices and what factors to consider when pricing selling objectives Before setting price, a union must locate on its outline for the product. If the conjunction has selected its tar cook market and office automobileefully, then its marketing mix strategy, including price, go out be evenhandedly straightforward. An example of this is if General Motors decides to set a new sports car to compete with European sports cars in the high-income segment, this suggests charging a high price. Motel 6, Econo Lodge, and red ink Roof Inn halt positioned themselves as motels that provide economic rooms for budget-minded travelers; this position requires charging a low price. Thus, pricing strategy is largely determined by decisions on market positioning. At the same time, the company whitethorn seek additional objectives as well.

The cle arer a firm is about its objectives, the easier it is to set price. Examples of common objectives are survival, current profit maximization, market share leadership, and product whole tone leadership. * Survival is an option if on that point is heavy competition, or ever-changing consumer wants. Its used to keep a plant going, the company sets a low price, hoping to increase demand. In this case, profits are less important than survival. As lasting as their prices cover variable costs and some reform costs, they can stay in business. However, survival is only a short-term objective. In the persistent run, the firm must canvas how to add value that consumers will pay for or spirit extinction. *  current profit...If you want to get a full essay, claim it on our website: Ordercustompaper.com

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