Price is amongst the four marketing mix elements. Pricing is an imperative strategic issue because it relates to the positioning of a product (Belleflamme & Peitz, 2009, p.12). Its importance also emanates from the fact that it is the only mix that generates a turnover for a business organization. In addition, pricing influences other elements of the marketing mix such as channel decisions, promotion, as well as product features. Blattberg & Neslin (2010, p.22) assert that pricing, being one of the 4P’s of marketing, supports the other elements that are in the mix. It is very difficult to efficiently determine price since it ought to reflect the existing relationship of the supply, as well as demand aspect of a product.
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Pricing strategies are very imperative as they may influence whether a firm will succeed or not in the business it is dealing in. As a result, firms ought to to be very careful when making a decision on the type or marketing strategy that they would like to assume. Nonetheless, it is worth noting that different pricing strategies have their own benefits as well as disadvantages, and they hugely impact the businesses.
Bazley, M., Hancock, P., & Robinson, P. (2014). Contemporary Accounting. Melbourne: Cengage Learning Australia.
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