Thorough Description of the Principles of Product Pricing in Management with Myhomeworkhelp.com
Pricing decisions homework help defines it as the most important decision that a firm has to make. It is necessary for companies to make a decision on setting reasonable prices for their products. In some firms, the price is derived from the cost and in others an established market price is accepted.
Pricing policy plays a very important role in pricing decisionthat is explained with pricing decisions homework help. It also plays an important role in a business since the long run of a business depends on a firm’s ability to increase its sales and derive maximum profit. The pricing policy structure should –
- Encourage optimum use of resources
- Promote exports
- Maintain a balance between demand and supply
- Avoid any adverse effects on the economy
- Provide incentive to the producer to improve technology and maximize production
Principles of product pricing
Pricing decisions homework help shows pricing decision is influenced by the pricing policy of an organization. Before setting the price of a product, it is important to understand the objectives of an organization. A firm needs to make the following marketing strategies to create value –
- Keep in mind the needs and wants of the customers and then develop a product
- Design a promotion program that will convey the value of the product to the customers
- Choose the right distribution channels through which the product will reach to the customers
- Design a pricing strategy that attracts customers
Pricing decisions and the factors influencing pricing decisions
Setting the price of a product can be one of the most complex and important things to do. The three major factors influencing pricing decisionsare explained better with pricing decisions assignment help–
- Customers – Increasing the price of a product can cause loss of a customer to a competitor.
- Competitors – Reactions of competitors is also capable of influencing pricing decisions.
- Costs – Costs also influence prices since the affect the supply.
Factors to consider while setting a price
Factors to consider while setting a price can be both internal and external that is explained precisely with pricing decisions assignment help.
Internal factors –
- Cost of the product or services
- Quality of the material
- Labour intensive
- Replacement or standards
- Loss leader
External factors –
- Life of the product or service
- Demand for the product or service
- Government made guidelines
- Customer’s preferences on the quality
- Type of industry
Objectives of pricing decisions
The different objectives of pricing decisionsexplained with pricing decisions assignment help are as follows –
- Pricing of the goods based on reasonable costs
- Maximize the prestige of the firm rather than the profit
- To maintain a good relationship with the government and public, it is important to charge a reasonable rate
- Increase the market share at the expense of immediate profit
- Immediate survival of the firm
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