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What is the role of pricing in by product pricing?

James Washington

in Homework Help

1 answer

1 answer

Justin Parker on August 1, 2018

Product Prices perform various functions in the marketing program. Here are the 4 major roles of price in the marketing. 1) Signal To The Buyer-Price offers a fast and very direct way of communication with their customers. The price is visible to the buyer and provides a basis of comparison between brands. The price can also be used to position your brand as a high quality product. (2) Instrument of Competition - Price offers you a way to quickly attack competitors, or alternatively to position your business in direct competition. 3) Improving Financial performance - Because Prices determine financial performance, pricing strategies impact on the business of the financial statements, both in the short and long term. 4) Marketing Program Considerations - the Prices can also replace the advertising and sales promotion, in addition to being used to strengthen these activities in the marketing program. For example, pricing strategy may be used as an incentive to the members of the channel, as the focus of the promotion strategy and as a signal of value.

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