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What is pricing policy explain factors involved in pricing policy?
Wiki User
∙ 12y ago
Factors Involved In pricing Policy
The pricing of the product involves consideration of the following factors:
1. Cost: Cost data occupy an important place in the price setting process. Cost are two types fixed cost and variable cost. In the short period which a firm wants to establish itself. The firm may not cover the fixed costs but it must cover the variable costs. But in the long run, all costs must be covered. If the entire costs are not covered, the producer stops production consequently, the supply is reduced which in turn may lead to higher price.
2.
Competitors
If the business is a monopolist, then it can set any price. At the other extreme, if a firm operates under conditions of perfect competition, it has no choice and must accept the market price. The reality is usually somewhere in between. In such cases the chosen price needs to be very carefully considered relative to those of close competitors.
(3) Customers
Consideration of customer expectations about price must be addressed. Ideally, a business should attempt to quantify its demand curve to estimate what volume of sales will be achieved at given prices
Wiki User
∙ 12y ago
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What is Heineken pricing strategy?
Globally, Heineken utilizes the premium pricing policy. This is effective as the Heineken brand is unique to that of competitors.
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Factors affecting marketing mix?
the target market would influence where the sweets were advertised and how they were promoted. Culture - would affect the type of products which could be developed and the style of advertising that was used. Also the type of outlets used and the channel of distribution would be affected by the culture and characteristics of the country. Competition - would affect the advertising used, pricing policy and where they sold their products in order to compete and be successful.
What is the difference between price strategy and price tactics?
A price strategy defines the initial price and gives direction for price movements over the product life cycle. The price policy is a strategy set for a specific market segment, based on a well-defined positioning strategy. Price tactics used to fine-tune a base price are the following: discounts (such as cash, quantity, and functional or seasonal discounts); allowances (such as promotional allowances); and rebates. All three are ways to induce buyers to do something they might otherwise not do. Geographic pricing tactics (such as FOB origin, uniform delivered, zone, freight absorption, and basing-point pricing) all moderate the impact of shipping charges as a portion of the product price. Special pricing tactics (such as single-price tactics, flexible pricing, price lining, professional services pricing, leader pricing, odd-even pricing, bait pricing, price bundling, and two-part pricing) can be used for a variety of reasons. For example, a business might decide to introduce a new product at a high skimming price, but use some price tactics such as rebates or freight absorption to induce trial.
A customer wants to return merchandise Store policy is that the merchandise cannot be returned what should you do?
Apologize saying "I'm sorry was there anything wrong with this item?" it may just be a simple fix or guidance that is needed and they may decide to keep the item, if not try to find what you can do for the customer maybe give a discount on another item, offer an exchange, a coupon , or a store credit. If you can not do any of the above then explain explain the reason for the denial of the return not just the policy. Usually there is a good reason the policy exists find out why and explain it in plain english and always make sure to empathize with the customer be calm but be assertive.
Which pricing policy adopted by Nike in south African country?
Which pricing policy adopted by nike in south African country?"
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What is Heineken pricing strategy?
Globally, Heineken utilizes the premium pricing policy. This is effective as the Heineken brand is unique to that of competitors.
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What was the US military policy that involved destroying Vietnamese villages?
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What do you mean by pricing policy?
A detailed study of the market structure gives us information about the way in which prices are determined under different market conditions. However, in reality, a firm adopts different policies and methods to fix the price of its products. Pricing policy refers to the policy of setting the price of the product or products and services by the management after taking into account of various internal and external factors, forces and its own business objectives. Pricing Policy basically depends on price theory that is the corner stone of economic theory. Pricing is considered as one of the basic and central problems of economic theory in a modern economy. Fixing prices are the most important aspect of managerial decision making because market price charged by the company affects the present and future production plans, pattern of distribution, nature of marketing etc.
Which factors caused the change in the policy of all India Muslim league?
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