Marketing

11

Pricing

11.1 Introduction

Whatever strategic route a company chooses in its approach to pricing, the end price of its products is the ultimate determinant of the amount of money a company is able to make. Company objectives are guided and influenced by market conditions and price must be a function of such conditions, so the achievement of company objectives often necessitates compromise over the amount of profit that can be realised. The importance of price as a function of the marketing mix varies from market to market, but it is not always the most important factor in the buyer’s decision-making process. For the seller, since price determines the amount of profit or loss, it is crucial that pricing is approached in a disciplined and orderly ...