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The Importance of Pricing in the Marketing Mix

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Price is an important element of the marketing mix. Describe the importance of pricing in the marketing mix. Describe three different pricing strategies and provide a real-life example of each in action. Suggest another strategy that would have worked better. What are the steps that need to be followed for developing the pricing of a new product? Can these steps be interchanged? Why?

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Describe the importance of pricing in the marketing mix.

Pricing essentially drives consumer interest for a product. If an item is priced too high, many potential customers may not be able to afford it. If an item is priced too low substantial profits may be in danger.

Pricing typically sets the expectation for the quality of the product. For instance, if two items are priced side by side, one from a lesser known company and the other from a prestigeous company and are both priced comparably, the consumer is more apt to purchase the well branded item.

If the cost for the high end item is substantially higher than the lesser known brand, without consideration being given to its true quality, consumers may opt for the more affordable option.

Describe three different pricing strategies and provide a real-life example of each in action. Suggest another strategy ...

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