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Elling Price Determining the correct price. Selling Price- The amount a seller charges for a good or service All businesses follow a process to determine.

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Presentation on theme: "Elling Price Determining the correct price. Selling Price- The amount a seller charges for a good or service All businesses follow a process to determine."— Presentation transcript:

1 elling Price Determining the correct price

2 Selling Price- The amount a seller charges for a good or service All businesses follow a process to determine prices Selling prices are dynamic And Selling Price is? 2

3 Components of Selling Price 3

4 Importance For Business – Determine income from sales – Reach company goals For Customers – Product comparison – Money allocation decisions 4

5 Pricing Objectives Should be compatible with marketing objectives. May change over time 5

6 Pricing Objectives-Sales Oriented What is the purpose? – To increase the total amount of income from sales Objectives: – Creating an image – Be more competitive – Obtaining, maintaining, or increasing market share 6

7 Pricing Objectives- Profit Oriented What is the purpose? – To create profits for the business Objectives – Surviving – Maximizing Profits – Earning return on investment – Earning return on sales 7

8 Factors Affecting Selling Price Costs – Fixed – Variable Supply and Demand Economic Conditions Competition – Pure Competition – Monopolistic Competition – Oligopoly – Monopoly 8

9 Factors Affecting Selling Price(cont.) Government Regulation – Price fixing – Price discrimination – Price advertising – Unit pricing Distribution Channels Company Objectives and Strategies – Product mix – Product life cycle – Target market 9


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