Price is one the elements of the marketing mix that generates revenue, while the other elements generate costs. It is one of the easiest elements to adjust. It takes a lot of time and money to adjust the other elements like product features, channels and even promotion. Traditionally, the price of a product was a major determinant of buyer choice. Although non-price factors have become important, still price remains as the most important determining factor of market share and profitability. Companies do their pricing in a variety of ways. In small companies the prices are often set by the Boss or the Owner of the company. In larger companies the price is handled by division and product-line managers. Even here the top management sets the general pricing guidelines and policies which the managers should keep in mind while pricing their product. Setting the price: The company must set is price in accordance with the value delivered and perceived by the customer. If the price is higher than the value then the company will miss potential profits and if the value is higher than the price, then the company will fail to harvest potential profits.
Selecting the price objective: The company should first decide where it wants its position in the industry. The clearer a firm’s objectives the easier it is to set the price. Determining the demand: Each price will lead to a different level of demand and therefore have a different impact on a company’s marketing objectives. The relation between alternative prices and the resulting current demand is captured. In normal conditions, demand and price are inversely proportional, the higher the price the lower the lower the demand and the higher the demand the lower the price. Companies want to work with customers who are less price-sensitive. But, the internet on the other hand has increased the price sensitivity of people. If shopping online if one visits two or more websites, then looking for the same product, he will buy from that website which sells the product for the lowest price. Estimating costs: Demand sets a ceiling on the price the company can charge for its product. Costs set the floor. The company’s costs take two forms fixed and variable. Fixed costs do not vary with production or sales revenue. But, variable costs vary with the production. The more the company produces the more the variable costs. Analyzing the price of the competitors: A company must always keep in mind the price of its competitors. It should consider whether the price change will initiate a price-war. Our network spans 3 continents and several countries. We offer three kinds of services: Assignment Help, Thesis Help and Online Tuitions for students in their college or University.
What is Business Environment? 3. How can the firms cope up with changing technological environment? 4. What do you mean by Globalisation? 6. What do you mean by disinvestment? 7. Give one measure taken by Indian Government to introduce liberalisation. 8. What do you mean by first mover advantage? 9. Which of the sector was given importance after independence? 10. What do you mean by Liberalisation? 11. Which two factors are included in Technological Environment? 12. What is meant by opportunities? 13. What do you mean by Innovation? 1. Define Business Environment. 2. Explain the specific and general forces of business environment ? 3. Enumerate the benefits of understanding business environment. 4. What are the main dimensions of business environment ? 5. Explain the role of political environment in shaping the business.? 6. Explain the concept of technological environment. 7. What do you understand by legal environment? 1. What do you mean by business environment? 2. What do you understand by economic environment?
The first traces of human habitation in Greece appeared during the Paleolithic Age (approx. During the Neolithic Age that followed (approx. Neolithic buildings spread throughout the country. The beginning of the Bronze Age (approx. Aegean region (Poliochni on Limnos). Flourishing settlements were found on Crete, Mainland Greece, the Cyclades and the Northeastern Aegean, regions where characteristic cultural patterns developed. At the beginning of the 2nd Millennium B.C., organized palatial societies appeared on Minoan Crete, resulting in the development of the first systematic scripts. The Minoans, with Knossos Palace as their epicenter, developed a communications network with races from the Eastern Mediterranean region, adopted certain elements and in turn decisively influenced cultures on the Greek mainland and the islands of the Aegean. On Mainland Greece, the Mycenean Greeks -taking advantage of the destruction caused on Crete by the volcanic eruption on Santorini (around 1500 B.C.)- became the dominant force in the Aegean during the last centuries of the 2nd Millennium B.C..