Planning for Pricing
Price planning is the most overlooked area of marketing.1 Rather, the organization places more emphasis on product development, advertising strategy, and distribution channel formation. Pricing decisions are thus quickly made without taking all the necessary market and cost factors into consideration. Pricing should be at the core of every business plan, since it is a powerful tool to increase revenue.
Price can be defined as a measure of the value exchanged by the buyer for the value offered by the seller. We would, therefore, normally expect price to reflect the costs to the seller of producing the product and the benefit to the buyer of consuming it. However, pricing decisions can be more complex, given that ...
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