Why is pricing so important to companies?
1. 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.
2. Pricing is the easiest of all marketing variables to change.
3. Firms take considerable pains to discover and anticipate the pricing strategies and tactics of other firms.
4. Pricing receives a great deal of attention because it is one of the few ways to differentiate a product in commoditized and mature markets.