This difference is known as the on-the-run premium.
Factors Affecting the Pricing Decisions Article Shared by Price is the only element of marketing mix that helps in generating income.
Therefore, a marketer should adopt a well-planned approach for pricing decisions. The marketer should know the factors that influence the pricing decisions before setting the price of a product. Figure-2 shows the factors that affect the pricing decisions: Now, let us discuss the factors affecting the pricing decisions as shown in Figure-2 briefly: Affect the pricing decisions to a great extent.
The marketers should set the prices as per the organizational goals. For instance, an organization has set a goal to produce quality products, thus, the prices will be set according to the quality of products.
Influence the price setting decisions of an organization. The organization may sell products at prices less than that of the competitors even if it is incurring high costs.
By following this strategy, the organization can increase sales volumes in the short run but cannot survive in the long run.
Thus, the marketers analyze the costs before setting the prices to minimize losses. Costs include cost of raw materials, selling and distribution overheads, cost of advertisement and sales promotion and office and administration overheads.
Legal and Regulatory Issues: Persuade marketers to change price decisions. The legal and regulatory laws set prices on various products, such as insurance and dairy items. These laws may lead to the fixing, freezing, or controlling of prices at minimum or maximum levels.
Include the nature of the product, substitutes of the product, stage of life-cycle of the product, and product diversification.
The organization matches the prices with the competitors and adjusts the prices more or less than the competitors. The organization also assesses that how the competitors respond to changes in the prices.
Help an organization in determining price decisions. For instance, an organization has a pricing objective to increase the market share through low pricing.
Therefore, it needs to set the prices less than the competitor prices to gain the market share. Price Elasticity of Demand: Refers to change in demand of a product due to change in price.
There are three situations that arise under it: Products that have inelastic demand will be highly priced b. Products that have more than elastic demand will be priced low c. Products that have elastic demand will be reasonably priced.An exploration of the nature and history of capitalism.
Global capitalism, colonies and Third-World economic realities.
Cost-volume-profit (CVP) analysis. is used to determine how changes in costs and volume affect a company's operating income and net income..
In performing this analysis, there are several assumptions made, including: Sales price per unit is constant. February 20, October 3, UK Custom Essays Writers Posted in UK Best Essays Research a specific company of your choice and identify some of the managerial decisions that were made over time and in response to changes in its market or competitive environment.
In , The Public Interest, then a leading venue for highbrow policy debate, published a provocative essay by Paul Baran, one of the fathers of the data transmission method known as packet.
The contracting officer rejected ISI’s proposal based on the three provisions quoted from the manufacturer’s “terms and warranty” document above. Corruption is one of those consensual topics. No one would argue it’s a good thing.
International charities and multilateral organisations have worked hard to combat it, racking up impressive.