FACTORS AFFECTING PRICING

FACTORS AFFECTING PRICING

Unlike other elements of the marketing mix, price is the only one, which generates revenue. It is, therefore, very important to set appropriate export prices based on:

• Company internal factors
• Market factors
• Environmental factors

Nevertheless, the traditional approach has often been to: "Take the domestic product price, add insurance and freight, put in a hefty cushion for contingencies


Company & Product Factors:

• Corporate and marketing objectives
• Firm and product positioning
• Product range, life cycle, substitutes, product differentiation and unique selling propositions
• Cost structures, manufacturing, experience effect and economies of scale
• Marketing, product development
• Available resources
• Inventory
• Shipping costs




Market Factors:

• Consumers perceptions, expectations and ability to pay
• Need for product adaptation, market servicing
• Market structure, distribution channels discounting pressures
• Market growth, demand elasticities
• Need for credit
• Competition objectives, strategies and strengths


Environmental Factors

• Government influences and constraints
• Currency fluctuations
• Business cycle stage, level of inflation
• Use of non-money payment and leasing

Great post dear friend, please post these kind off topics it really help us

Pricing is the unseen important factor, which if not handled properly can result in huge loss for the company. Company usually focus on Marketing and advertising strategy but fail to understand the pricing factor. pricing also helps to find out more about the brand. They also indicates abut whether the brand is made only for the niche category or for the mass appeal.

Originally Posted by abhishreshthaa

FACTORS AFFECTING PRICING

Unlike other elements of the marketing mix, price is the only one, which generates revenue. It is, therefore, very important to set appropriate export prices based on:

• Company internal factors
• Market factors
• Environmental factors

Nevertheless, the traditional approach has often been to: "Take the domestic product price, add insurance and freight, put in a hefty cushion for contingencies


Company & Product Factors:

• Corporate and marketing objectives
• Firm and product positioning
• Product range, life cycle, substitutes, product differentiation and unique selling propositions
• Cost structures, manufacturing, experience effect and economies of scale
• Marketing, product development
• Available resources
• Inventory
• Shipping costs




Market Factors:

• Consumers perceptions, expectations and ability to pay
• Need for product adaptation, market servicing
• Market structure, distribution channels discounting pressures
• Market growth, demand elasticities
• Need for credit
• Competition objectives, strategies and strengths


Environmental Factors

• Government influences and constraints
• Currency fluctuations
• Business cycle stage, level of inflation
• Use of non-money payment and leasing

Hey abhi, thanks for explaining about the various factors which can affect the pricing and it would be helpful for many people. Well, i have also got some information which can give some more important points regarding the topic so please download and check it.