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Students studying strategy and marketing are taught that price is an important aspect of product positioning. Price is the odd-one-out of the marketing mix because it generates revenue.
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"There are two fools in every market: One asks too little, one asks too much." -- Russian Proverb Maastricht University Faculty of Economics and Business Administration Maastricht, September 13, 2004 Vetten, R. (198862) International Business Economics European Business (3016B) Assignment Schieman, N. Students studying strategy and marketing are taught that price is an important aspect of product positioning. Price is the odd-one-out of the marketing mix because it generates revenue. In contrast, product, promotion and place incur costs. Although there are no universal rules to what constitutes a good pricing policy, students are taught that pricing strategy will be generally determined by a combination of factors. These usually include the prices of competitive products, product maturity, production cost or the product's price elasticity. However, the underlying economic motivation should always be to cover the incurred cost. It is therefore essential that companies understand how to set prices because both undercharging (= lost margin) and overcharging (= lost sales) will have dramatic...
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