(SECOND P OF MARKETING)
Price is the amount of money paid for buying goods and services. The best price is the one at which the manufacturer, the seller, and the customer agree. Price is determined according to demand and supply. If demand is high the price will be high. If the supply is abundant the price will be low. If both the situations are reversed the results will be opposite.
PRICE DETERMINING FACTORS / PRICE STRATEGY
The following are the factors that determine the price of a product.
1. Competition and its nature (with both local and foreign goods)
2. The purchasing power and social status of the customer
3. Nature of advertising and other promotional Means
4. Cost of production and distribution
5. The position of demand and supply
6. Customers knowledge of the market
7. National and international economic conditions
8. Government control and laws
9. Sellers’ profit margin
10. Buyers’ view of the product