Pricing

Price may be defined as the exchange of goods and services in terms of money. Without price, there is no marketing in the society. Price of a product or service is what the seller feels it worth in terms of money, to the buyer. To perform the marketing job effectively, the management has to set goals first. Before determining the price, the management must decide the objectives of pricing. The market price of a product influences wages, rent, interest and profits. The price is a matter of vital importance to the buyer and seller. The price can decide the success or failure of a firm. By transferring to money economy from barter economy, the importance of price has been increased. Price is a primary source of revenue which all firms try to maximise by expanding markets.