Pricing as an Element of Marketing Mix

• anytime anything is sold, there must be a price involved
• marketing- consists of the full range of activities involved in facilitating commercial exchanges
• product: good or services
• buyer: consumer or business customer
• something in exchange: price
• good- product could be something tangible
• service- result of human or mechanical effort
• consumer- individual who purchases a product for his or her own use
• consumer- end user
• business customer- individual or group who purchases the product in order to resell it
• price- distinguished by the use of traditional terms
• if the product in the commercial exchange is good, the product's price be called price
• if the product is service, the product will have alternative terms
• most goods?

  price
• college courses, education?

  tuition
• use of place to live or use of equipment for a period of time?

  rent
• professional services: lawyers, doctors, consultants?

  fee
• insurance?

  premium
• transportation?

  fare
• use of road or bridge, or long-distance phone rate?

  toll
• work of hourly workers?

  wages
• sales effort?

  commision
• pricing- establishing a value
• pricing- process of fixing the value
• price- money value for a product
• price- amount needed in order to acquire a product or service
• price- expresses in terms of peso per unit
• price- vital element of marketing mix because it dictates a company's survival and profitability
• the customer's view of price: Price- Value - Perceived benefits - perceived costs
• customer- ultimate user of the finished product
• customer- seeks to satisfy a need or set of needs
• customer- uses several criteria
• customer- would like to pay as little as possible to satisfy these needs
• all profit and non-profit organization must set prices on their product or services
• two different ways to look at the role of price in society?

  rational man

  irrational man
• rational man pricing: economic perspective- price increase, demand decrease. when price decline, demand will increase
• irrational man pricing: freedom rules- prices go up and people buy more
• irrational man pricing: freedom rules- prices go down and people become suspicious and buy less
• price- important to marketers
• pricing objectives?

  survival

  profit

  sales

  market

  image