1. Determining the correct price
elling Price
Determining the correct price

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

3. Components of Selling Price

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

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

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

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

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

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