Pricing is the one piece of the marketing mix that is the responsibility of multiple groups across an organization. As a result, there tends to be considerable cross-functional input into the pricing decision process. In determining pricing, marketers want the pricing to provide value to the consumer while at the same time meeting or beating competitors prices. Since the cost of production ultimately determines the floor on prices, the organizations accountants use this as a starting point to arrive at the ultimate price of a product. Certainly, the finance department in an organization has a strong interest in the pricing process since this directly affects its goals for return on investment.
You will continue to build your marketing strategy for your marketing plan in this modules assignment by creating your pricing strategy. The pricing strategy is an important step in the overall strategy, as price determines potential profit on one end, yet has to be balanced properly with demand and expectations of the target market. The resources in this module will support the creation of your pricing strategy.
Describe the concepts of demand and price elasticity and their impact on pricing
Discuss the concept of exchange and its role in pricing strategy
Examine various marketing principles and concepts
Evaluate the pricing administration decisions made by marketers
