5.

Pricing Decisions
Pricing is such an important decision, any change in price should be
Approached cautiously and should be based on an analysis of all available
economic and marketing information, and the most important the companys
current status, capacity and standing in the market.

Pricing is aligned to any given marketing objective. There should be a clearer

understanding of the market and the determinant factors in a given time and
place. Either the factor in pricing decision is internal or external, a company
and its managers should conduct a thorough study of the market and the
direction of the company.

A company should understand the market in a given time where a company

operates. There is difference in pricing decision in a situation characterize of
pure monopoly, monopolistic competition, pure competition and oligopolistic
competition.

The different strategy-survival, profit maximization, market leadership and

product-quality leadership, set by the company in a given time plays an
important part in decision making. The price in a condition of companys
survival is much lower and competitive in the market. While in a period
where
the primary objective is profit maximization, the tendency of pricing is high.

Pricing decision making could also be set due to internal factors. It can be in
the form of changing product design, image or system of distribution. Cost
set
the minimum price that a company can charge for its product. It is the cost
allotted by the company in producing, distributing and selling product and
accumulate rate of return.

Since the situation internal and external of the company is constantly

changing, a manager should always study, the current companys financial

condition, level of achieving targets and plans, the competitors strategy and
campaigns. He should update himself time-to-time on the economic situation
and the competitors.