PRICING

Pricing

Pricing

Discussion

One of the four major elements of the trading mix is price. Pricing is a significant strategic topic because it is related to merchandise positioning. Furthermore pricing other marketing mix elements such as product features, channel decisions, and promotion.

The firm's pricing objectives must be recognized in alignment to work out the optimal pricing.

For new goods, the price objective often is either to maximize profit margin or to maximize quantity (market share). To rendezvous these objectives, skim pricing and penetration pricing strategies often are employed. Joel Dean considered these pricing policies in his classic HBR article deserving pricing principles for New ...