Importance Of Pricing In Marketing Strategy | IMSoup

Price is the amount of money charged for a product or service. It is a value a consumer is willing to exchange for the benefit of owning or using a product or service. Most customers equate the price they pay with the value of the product they get in return for the amount.

Pricing has a dual marketing function of making products affordable to its target market and at the same time, reflecting the value of a product. The price charged for a product or service should, therefore, be not more than the value of the benefits it provides to customers.

Price is the only element in the marketing mix that produces revenue, all other elements represent the cost. It is also the most flexible element in the marketing. Unlike product, place, and promotion, the price can be changed quickly. However, pricing and price competition is the number one problem that plagued many marketing executives.

In essence, many companies do not know how to handle pricing well. Some are too quick on reducing the price to get a sale rather than resorting to convincing the customers that their products are good and deserve a higher price.

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Importance Of Pricing In Marketing Strategy | IMSoup.