5. Pricing Policy
Introduction
Pricing policy is a very visible and key part of a company's marketing strategy
and a marketing plan. A company's pricing policy is the final expression of its
marketing strategy.
In the end, no business transaction takes place unless
everything else you do in your marketing plan
culminates in a sale. The selling price must be
justified, or is the result of the total marketing
approach.Companies adopt their pricing policy for a number of reasons. In this section,
we will discuss some of those reasons. We will discuss the key role of suppliers
and the effect they have on pricing policy.
How to use this information
This material will assist you in developing a pricing policy for your business.
We will be examining the various factors that can influence the development of
a pricing policy.
As you move through this material, think of how your market research and
analysis, pricing philosophy and business style are influenced by the factors
discussed in this section to arrive at your business pricing policy.
If you have The Business Plan, you will recognize some of the
same material in Product and Sources of Supply Parts 1 &
2.
On the other hand, it may be worthwhile to refresh yourself on
the key points reviewed in the context of setting pricing
policy.