Question

Why is pricing an extremely important component of marketing? List 3 aspects of pricing that make it important to marketing, to the organization, and to its customers. Think of things that are unique to the pricing variable compared to the other three marketing variables of product, promotion, and distribution.

Answer 1

Pricing means initiating all the decisions relating to the fixing up of prices of the products of services that are being produced in an economy.

Apects of pricing which makes it Important:-
1. Flexibility:- Pricing is a flexible component of marketing mix, unlike product, place and promotion mix because it takes comparatively lower time to change price mix unlike other three components.

2. Component for judgement:- Price is one of the most important components, on which the product is being judged. Hence, in order to retain in the market, it is very necessary to decide the right price after proper market research.

3. Marketing tool:- Being a flexible component, it is the most important tool for the Marketing of the products. If the sales is to be increased, then simply price would be increased.

4. Value of the product:- Price is the main component that decides the value for consumer's money.