What are the main reasons that companies pay attention to pricing?

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.

What is transfer pricing?

What is transfer pricing?

Transfer pricing occurs when one unit in an organization sells products to another unit. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities.

What do we mean by prestige pricing?

What do we mean by prestige pricing?

This strategy sets prices at the top end of all competing products in a category. This is done to promote an image of exclusivity and superior quality. This is a viable approach in situations where it is hard to objectively judge the true value of a product.

What do we mean by repositioning strategy?

What do we mean by repositioning strategy? 

This strategy involves targeting existing products at new markets or segments. This process can involve real or perceived changes to a product. These typically includes changes to the marketing mix, such as product, place, price and promotion. Repositioning is done to keep up with consumer wants and needs.

What is the connection of social responsibility and marketing performance?

What is the connection of social responsibility and marketing performance?

• This causes employees to become more motivated to serve customers, more committed to the firm, more committed to standards of high quality, and more satisfied with their jobs.

• This causes customers to become more loyal to the firm and increase their purchases from the firm.

• This leads to increased trust among the firm's stakeholders. The most important contributing factor to gaining trust is the perception that the firm and its employees will not sacrifice their standards of integrity.

Why is the connection of marketing ethics and leadership so important?

Why is the connection of marketing ethics and leadership so important?

An ethical climate calls for organizational members to incorporate the interests of all stakeholders, including customers, in their decisions and actions.

In an ethical environment, a strong leader is needed to maintain the policies and standards of ethical leadership.

When such a leader in top management is found and displays these traits, the employees are more likely to follow the example of the leader, which leads to a more friendly and self-aware working environment in the firm.