Selling Today: Partnering to Create Value, 14/e

Selling Products with a Price Strategy

1. 7.4 Explain how to sell your product with a price strategy

Price, promotion, product, and place are the four elements that make up the marketing mix. Pricing decisions must be made at each stage of the product life cycle. Therefore, setting the price can be a complex process. The first step in establishing price is to determine the firm’s pricing objectives. Some firms set their prices to maximize their profits. They aim for a price as high as possible without causing a disproportionate reduction in unit sales. Other firms set a market share objective. Management may decide that the strategic advantage of an increased market share outweighs a temporary reduction in profits. Many of the new companies doing ...