2. Internal factors. They include: Pricing targets. Costs. Stay, market leadership, profit, quality ......... Costs. Determine the cost structure (fixed costs, variable, College) Price must cover the costs of production, distribution and promotion in addition to a reasonable profit margin. The administration's policy. We may see that the senior management in the new product introduction phase must be at a low price for the burning of the market, or vice versa, and this affects pricing decisions.

III- Pricing policies: Skimming market policy. Market penetration policy. Psychological pricing policy (psychological) Professional pricing policy. Promotional pricing policy. Geographical pricing policy. Discount rate policies. Price discrimination policy. Product line pricing policy. Range of goods pricing policy.

1. Skimming Market Policy This policy determines the maximum price of the product to achieve the maximum profit possible in the short term. This policy is usually used in the case of new products that are introduced to the market for the first time or if the goods was modified or in case of monopoly. Ex: Samsung when introducing new products and new forms, their specifications. This policy is short-term, as a marketer has to reduce the price after a period of time because of the entry of competitors into the market.

2. Market Penetration Policy Used to lower the price of the product to enable the organization to achieve large sales volume. This policy assumes the price elasticity of demand for the commodity, where lower prices lead to a significant increase in sales volume.

3. Psychological Pricing Policy Psychological pricing depends on motivating the consumer to make the purchasing decision as a result of an emotional reaction, not on the basis of logical thinking. This policy is often used in the consumption market: Fractional prices (9.99) Boasting prices are very high prices

4. Vocational Pricing Policy (التسعير المهني) Such as legal services, financial consulting, doctor And here there are two policies: Moral Pricing: used when demand is in-elastic Polite Pricing: request different prices for the same product or service depending on circumstances or consumer case. (what you pay)

5. Promotional Pricing Policy Aims to work to promote and stimulate sales. Phishing pricing: the pricing of products known in the market at a lower price than the market price. Special events pricing: such as the end of the season for seasonal goods. Psychological discount pricing (compare prices): Shops where old prices are presented with new price.

6. Geographical Pricing Policy The price is based on who pays the transportation costs. The most important policies: Consolidated Geographical Prices : the producer pays the transport cost of the product so that consumers pay the same price for a commodity regardless of their geographical location. Zone Pricing: the company divides the market into several areas and pays the cost of transport to the different regions and adds that cost to the price of the product.

7. Discount Rates Policy Commercial Discount: given to third party distributors Quantitative Discount: given at the purchase of large quantities Cash discount: given when selling on credit to encourage the payment before the maturity date

8. The Discrimination Pricing Policy This policy is based on the introduction of a single product or service at different prices to various market segments in the market.

9. Pricing Policy of Line Products When using this policy should examine the relationship between the products if the products are complementary to each other. And including: Restricted Pricing: I mean, the basic pricing of the product at a low price, while pricing the product needed to run it or enhance his performance at a very high. Such as razor pricing at a low price, but the high price of razor blades. Measuring device such as sugar in the blood device pricing at a low price and high-price of slides. Diverse pricing: is put a specific number of prices of selected groups of products based on the names of brands or models similar in quality .. Such as in clothing stores suits pricing 250 LE. 350 LE. 500 LE.

Encouraging pricing: may contain product line on the models and some models are characterized by high quality and high price, and there may be models of less quality and low price to attract the customer sensitivity to price. And this strategy is often used in electrical and household items.

10. The range of goods pricing policy A number of organizations produce and market more than a product. This organization prices some goods and packs them in the same cover at the same price so that they are bought by the consumer as a single group. This method is used to get rid of slow-moving products with fast product turnover. Ex: Shampoo and Conditioner.

IV- Determining Pricing Methods Pricing on the basis of cost. Pricing based on the break-even point and the targeted profit. Pricing on the basis of value (perceived benefit) Pricing on the basis of the market (competition)

1. Pricing on the basis of added cost: Pricing per unit of the product at a price equal to the cost per unit plus the desired profit percentage. Price per unit = cost per unit + profit % For example, "I suppose that there is a commodity product X: Variable costs 10 pounds. Fixed costs 300,000 pounds. Quantity of sales expected 50,000 units. Producer wants to achieve a profit margin of 20% in addition to the cost what is the price of iron in the market?

The cost per unit = variable costs + (fixed costs /sales of units) so the cost of one unit= 10 + (300000/50000) = 16 the price / unit = cost per unit / (1 - desired profit margin) = 16 / (1-20%) = 20 pounds And this way is considered to be one of the easy ways, but it has several drawbacks, including: It does not take into account the demand. Subject to personal guess. Require effective and correct system to calculate the cost.

2. Pricing based on the equivalent point and the target profit This method is based on costing, as the company is trying to estimate the price that will bring it profits The equivalent point is the quantity sold at which the revenue is equal to total costs.

3. Pricing Based on Quantity (perceived benefit) Many products are priced on the basis of the perceived benefit. The consumer is willing to pay a high price to buy the product according to the benefits perceived by him. This may not be the real price of the product. For example, a cup of coffee at home may only cost 0.5 pounds while at Starbucks it costs 35.

4. Pricing on the basis of the market (competition) Price is determined according to the demand for products in the market, as well as the supply of those products and not according to cost considerations. This method is used in the event of increased competition in the market. And there are situations where the use of this method is preferred: In the case of homogeneous commodities such as foodstuffs. With high price elasticity where goods affects simple in price on sales significantly change.

V. Determine Consumer Reaction: Consumers reactions can be measured for the price by identifying the degree of satisfaction or non-satisfaction of the consumer - the user - the beneficiary for the item price or service. And it can be identified consumer trends on prices through the impact of price changes on sales volume or activate the presentations of sales or advertising sales, and others.

VI. Price Controls Price controls is through the following steps: Is the sales objectives have been achieved or not? Does the price is the reason not to check in reducer sales goals? Identify the reactions of consumers about prices. The appropriateness of discounts granted in comparison with competitors. Change in product prices. Over the marketing mix strategy Consistency such as product planning, distribution, promotion with pricing.