Question

Pricing of a product is an important and effective competitive weapon in marketing which depends upon various factors. Explain any three such factors.

Answer 1

It refers to the set of marketing tools that a firm uses to pursue its objectives in a target market.

2.Elements of Marketing Mix

(i) Product It means goods or services or ‘anything of value’ which is offered to the market for sale.

(ii) Price It is the amount of money, which the customers have to pay to obtain the product.

(iii) Promotion It refers to all such activities which intend to inform customers about the products and persuade them to purchase these products.

(iv) Place or Physical distribution It includes all the activities that make firms’ products available to the target customers. Place mix refers to all decisions related to physical distribution of goods and services.