Activity-Sheet-2-Pricing-Principles-of-Marketing.docx -...

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1of12HIGH SCHOOL DEPARTMENTSY. 2020-2021WEEK15ACTIVITY SHEETCOURSE SUBJECT:PRINCIPLES OF MARKETINGSUBJECT TEACHER:LESSON:4Ps of Marketing: PRICINGPRICINGPricingis the value of a thing or service expressed in terms of money. In simplemarketing term, price is the whole amount of money meaning cost plus all incidentalexpenses, paid for a certain amount of goods. It is the only element among the four P'sof the Marketing mix that generates sales revenues. And being the only marketing mixthat generates revenue to the company, it is very important how one could set pricesunto its products.The pricing of any product is extremely complex and intense as it is a result of anumber of calculations, research work, risk taking ability and understanding of themarket and the consumers. The management of the company considers everythingbefore they price a product, this everything includes the segment of the product, theability of a consumer to pay for the products, the conditions of the market, action of thecompetitor, the production and the raw material cost or you can say the cost ofmanufacturing, and of course the margin or the profit margins.As previously stated,priceis very important because it is theheart and soulofany operational market. Prices are significant for a number of reasons:1.Price helps determine the expenditures of consumers since prices of goodsgreatly influence decision whether to buy or not.2.Price fixes the level of profits3.Price is also a very potent influence on patronage demand. However it is notthe most important one. Quality and service are generally of equal or even ofgreater importance.PRICING STRATEGYApricing strategyis a model or methodused to establish the best price for a productor service. It helps you choose prices tomaximize profits and shareholder valuewhile considering consumer and marketdemand.Pricing strategiestake into account manyof your business factors, like revenue goals,marketing objectives, target audience, brand

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Pricing, 100, gmail, 99 99

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