Marketing A Product Essay

Marketing A Product Essay-71
Factors To Consider When Setting Prices – It is important, before setting prices, to decide on a strategy for a product – If a organization has selected its target market and positioning carefully, then its marketing-mix strategy, including price, will be fairly straight forward.

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– Oligopolistic Competition – a market in which there are a few sellers who are highly sensitive to each other’s pricing and marketing strategies.

– Pure Monopoly – A market in which there is a single seller – it may be a government monopoly, a private, regulated monopoly or a private non-regulated monopoly.

– Current Profit Maximisation – A lot of companies want to set a price that will maximise current profits.

They estimate what demand and costs will be at different prices and choose the price that will produce the maximum current profit.

– All companies must set prices on their products or services.

– These may come in many forms – You pay, rent, tuition, doctor’s fee’s, tariff’s, interest, toll, premium, salary, commission, wage, income taxes, etc etc.

– Definition of price (by Kotler) – The amount of money charged for a product or service or the sum of values consumers exchange for the benefits of having or using the product or service.

– Pricing is simply the process of placing a price on a product or service.

– Total Costs – are the sum of the fixed and variable costs for any given level of production.

People Involved With Pricing – Management must decide who within the company should set prices.

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