The 4P's of marketing are: Product, Price, Place and Promotion. These 4P's are also known as the Marketing Mix.
They are the four basic pillars of any marketing strategy and, when they are balanced, they influence and conquer the public.
Below, we explain the main aspects you need to know about pricing in marketing.
What is Price in Marketing?
Price in marketing is generally defined as the amount of money a customer is willing to pay to obtain the benefits of a product.
This is a simple definition. But let's go a little whatsapp number philippines deeper: imagine that you are the customer and you ask yourself: what makes me willing to spend a certain amount of money to obtain the benefits of a product?
The fact is that price has been the main determinant of consumer choice.
And with the possibilities opened up by the Internet to consumers, this determinant has intensified.
With the Internet, consumers can:
instantly compare prices across thousands of sellers;
get free products;
customize the offers they are looking for;
stipulate the price they are willing to pay and find the price they want;
negotiate prices in online, in-person or auction exchanges.
Thus, several elements define and condition the willingness of customers to spend a certain amount of money to obtain a product.
These elements are very important to take into account when setting the price. Find out about them now!
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What elements should I consider in the pricing process?
The elements that must be taken into account when setting the price of a product are:
1. Costs
Costs mean: expenses you have had until the moment the product reaches the consumer.
These expenses are necessary for the operation of the company, the labor of the workers, the expenses with bureaucracy, taxes, marketing strategies, the raw materials used, that is, items that are directly involved in the production process of the product.
These costs can be fixed or variable. Fixed costs are those that do not change based on the volume produced or sold.