What is the role of the price in the marketing mix?

The role of the price in the marketing mix is ​​to define a price strategy that best attracts those on the company's target market. The price of the product, discount, segmentation and financing options are included in this problem. Determination of the price involves determining what the target market is ready to pay, the cost of product production and what competitors charge. The company must determine what its customers are willing to pay, which can often be difficult if the product or service is unique or significantly different from what is currently offered. If this is the case, businesses can use surveys and test marketing techniques to get inspecting what price points are optimal. The selling price should always be higher than the cost of product production to make profits. The limit profit can be calculated to determine how much profit is achieved on the item sold.

Price components in marketing mIXU includes not only the real price of the product, but also discounts and availability of customers' financing. For example, the company may be better to segment its market and offer different price options. This is often done when software companies create home and business versions of their products, such as a business version that is of a higher price. If the company offers its customers discounted prices or financing opportunities, details should also be included in the marketing strategy.

Comparison of price strategies with competition can also be beneficial. Business should determine which Baschce to compete, for example by becoming a leading prize, offering the highest quality or becoming a luxury brand. After the determination, the company should reasonably set its price in relation to competitors. For example, if the company wanted to be located as the highest quality, it would not want to sell its product at a cheaper price than others on the market.