Business Resources

A. Definition of Price
Price is one of a very important part in marketing a product because the price is one of the four marketing mix / marketing mix (4P = product, price, place, promotion / product, pricing, distribution, promotion). The price is an exchange of goods or services which are valued in monetary terms. Price is one determinant of the success of a company because the price determines how much profit to be gained from the sale of company products both in the form of goods or services. Setting the price too high will cause sales to decline, but if the price is too low will reduce the profits that can be obtained from the company’s organization.

B. Pricing Objectives
1. Getting the maximum profit. By setting a competitive price then the company will gain optimal profit.

2. Maintain company. From the company earned a profit margin will be used for operational costs of the company. Examples: for salaries / wages of employees, to pay the electric bill, water bill under the ground, the purchase of raw materials, transportation costs, and so forth.

3. Achieving ROI (Return on Investment). The company would want a turnover of investment companies that invested in the appropriate pricing will accelerate the achievement of capital return / ROI. Read entire article.