What are the main reasons that companies pay attention to pricing?
• Due to the revenue equation, Revenue = Price × Quantity Sold. There are 2 ways for a firm to grow revenue: increase price or increase the volume of product sold.
• Pricing is the easiest of all marketing variables to change.
• Firms take considerable pains to discover and anticipate the pricing strategies and tactics of other firms.
• Pricing receives a great deal of attention because it is one of the few ways to differentiate a product in commoditized and mature markets.