How should a company set prices initially for products or services
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Transcript of How should a company set prices initially for products or services
Developing Pricing strategies and programs : Part 2
The only element of the marketing mix that produces revenue!
The other elements
produce costs. It is also the
easiest to adjust!
Internet especially
has had a profound
impact on buyers
and sellers!
Changing pricing environment:
Easy access to credit,
enticing market campaigns,
progressive technology
Buyers can
Get instant price comparisons from a slew of vendors
Name their price and have it met (Priceline.com)
Get free products (eg: free software products)
Monitor customer behaviour and tailor offers accordingly
Give certain customers access to special prices
Negotiate prices in online auctions and in person
Sellers can
Developing appropriate
pricing strategies and
programs is
extremely important!!
How do consumers process and evaluate
prices?