what is pricing strategies? Importance and Objectives.

What is pricing strategies? Importance and Objective. 

There are two terms used in pricing strategy one is price and another one is pricing, 

Price -price is the amount that is charged for a product and service by the producer or seller from the customers, it is specific amount of product that consumer expect to pay in exchange. Price is a result of pricing process. 

Pricing :- Pricing is a process of fixing the price of goods and services. During pricing process it involves many internal and external factors such as production course competition demand and the value that the product and service provides customers. On the other word we can say that pricing is a strategy decision that made in order to determine the right price of goods and services by the company that will allow to the company to achieve their goal and objective, satisfying the needs of their customer. The price of product and service must be highly perceptible to customers and should affect their decisions to buy a product and service. 

Price is an important tool for element of the marketing makes which can be used as a strategic marketing variable to meet the competition with the product competitor. Companies use price as a weapon by which they can satisfy their consumer with good manner and can encourage the market competition. Price is  different element from other elements of the marketing mix it is quantitative in nature and it can be charged easily with immediate effect when required by the company. 

There is difference in meaning of price to the manufacturer and customer. To a manufacturer, price of the product and service represent quantity of money received by the firm or seller and to a customer, price depends upon his perception of the value of the product or sacrifice. 

The importance of pricing

Price is a very important element of marketing mix there is no marketing without pricing it affects both the buyer and the seller. Price of the product and service help the company to retain the customer or loose. if the price of product and service is higher than the chances of losing of customer will be high and if the price is lower than there is a chance to make loss of the company. Price of the product and service must be reasonable to get profit and retain the customer. hence while making the price decision, price maker must always be taken in full harmony in the forms strategic environment and the realities of the Marketplace. That what market except? 

• The quality and quantity can be measured with the help of price of the product hence price the most comparable attribute. Sometimes when customer unable to evaluate the quality of the product then the customer takes help of the price to inspect the quality and quantity of the product. 

• Price of the product and service shows the class and type of the consumer Junglee high price product and services are purchased by status conscious persons while the low price product and service are meant for messes. 

• Price helps of sustained economic development as it affect the living standard of the society and has a significance bearing on Profit. 

• Price works as a weapon to realise the goals of plan economy. 

• Price effect the demand of the product and service it has reverse relationship between demand and price, if price goes up demand decline and when price goes down then demand goes up. 

Objectives of pricing

1. Enhance image of form and its offering.
2. Maximum long run prophets
3. Maximum sort run profits 
4. Growth 
5. Make a product visible 
6. Stabilize market
7. Discourage entrance 
8. Bill traffic 
9. Speed exit of Marginal firms
10. Help in the sale of week items in the line 
11. Maintain loyalty of middleman and get their sales support 
12. A void government investigation and control

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