Sell Value, Not Price
Price produces revenue.
Philip Kotler
Price is the one element of the marketing that produces revenue; the other elements of produce costs.
A firm must set price for the first time when it develops a new product, when it introduces its regular products into a new distribution channel or geographical area, and when it enter bids on new contract work.
The company first decides where it wants to position its market offering.
Each price will lead to different level of demand and therefore have a different impact on a company's marketing objective.
Demand set a ceiling on the price the company can charge for its product.
The firm must take the competitor's costs' prices, and possible price reactions into account.
Most companies will adjust their list price and give discounts and allowances for early payment, volume purchases, and off-season buying.
Company can use several pricing techniques to stimulate early purchase.
Company can adjust the basic price to accomudate differencies in customers, products,and location.
Companies often face situations where they may need to cut or raise prices.
No comments:
Post a Comment