Concept of Pricing in Marketing Management

 Pricing is one of the most important function of Marketing Management that plays an important role for the achieving of marketing objectives.It also plays an important role in the growth and profit maximization of organization.

Definition-

The process of fixing financial value of product,service idea to exchange from customers this process is called Pricing.

In other words we can say that the process of setting the price of product,service or idea for customers to get and increase their living standard this process is called Pricing.

Nature of Pricing-

1.It is an internal function.

2.It belongs to top class management.

3.It is an economic activity.

4.It is key element of marketing mix.

5.It is also psychological activity.

6.It also cares supply and demand of product.

7.It is affected many internal and external element.

8.It depends on the cost of product or service.

9.It also cares competitors's cost.

10.It belongs to objectives of organization.

Importance-

1.It plays an important role to attract new customers towards organization.

2.It increases the growth rate of organization.

3.It influences the demand of product,service or idea in the market.

4.It influences the market share of organization.

5.It ensures the features of product or service before customers.These features may be quality,quantity,power,capacity.

6.It supports to face competition in world's market.

7.It also helps in branding process.

8.It also helps to achieve objective of organization.

9.It also helps to increase the revenue of organization.

10.It affects the buying decision of customers.

11.It makes the perception of customers towards product or service positive.

So we can say that pricing is an important function of marketing management that decides the future of organization in country and world's market.