Principles of Marketing
Price can be defined as a measure of value exchanged by the buyer for the value offered by the seller it is the worth of a product.
FACTORS INFLUENCING PRICING DECISIONS
The factors influencing pricing decisions can be classified to as either Internal or external factors. Thus:
Includes objectives such as survival (you set the price low), Profit maximization (You set the price high) Quality leadership (You set the price high) Market share leadership (where you set the price low)
Marketing mix strategy
The other P,s that is Place , promotion, Product, Probe and or (Price) will influence the final price of a product. For instance the quality of a product, the method of promotion used and place where the product is sold will influence price of product.
Cost of production
Marketers will always ensure that the price charged for a product covers the cost of production.
If the demand of a product is high, the price is high.
If the supply of a product is high the price is low
Type of Market
The target market will influence the price charged for a product.
Marketers will always charge a price that is in line with consumers perception of products price.
In circumstances of high competition, the price is low.
The government will always influence price of products through taxation.
If there’s inflation the prices of products are likely to be relatively higher.