Price is one of the 4Ps of marketing.
Price
Price is one of the 4Ps of marketing. These 4 Ps represent critical considerations that businesses and their management should take into account and implement wisely to facilitate the successful marketing of their products and services. The term price refers to the amount of money that people will pay to purchase a good or service. It is critical for businesses and their marketers to link the price of their goods and service to their real and perceived value. They have to do this while also taking into account the retail markup, prices that the competitors have set up, seasonal discounts, and the associated costs of supplying the product. There are some instances where a business may opt to increase the price of a product so as to make it exclusive or seem like a luxury brand. In other instances, the business may choose to lower the price of the product to attract more consumers to the product. Marketers also have the responsibility of identifying if and when discounting the price of a product is appropriate. If wrongly timed, discounted products may give off the impression that the products are not desirable, failing to attract any consumer interest and purchases. That said, the price of a product is integral and key for the ability of a company to successfully market it.
Article 1
According to Trihatmoko and Purnamasari (2019), marketers must determine the pricing strategy of a new product with a great deal of accuracy and consideration. The researchers state that the pricing of goods and services has a direct impact on the market share. When introducing a new product, ideally the price of that new product should be lower than that of goods that are currently in the market from the competitor’s side. The first price-related objective or goal is for the product to first get a market share or set a market position among the products of the competition. The authors of the article state that the purchasing decisions of the buyer are influenced by a couple of things, product pricing being one of the most prominent. Also, buyers evaluate the prices of a product before making a decision and the evaluation of these prices is influenced by the set prices of competing products. Pricing strategy determination takes into account a variety of factors including the product design, features, and quality of the product. The researchers came to the conclusion that buyers make purchasing decisions based on marketing factors of price such as the price structure, product return guarantee, terms of payment, and the price level. Product consumers refer to the product’s marketing environment on matters of product design, quality, and prices of competing products.
Article 2
According to Nurman and Harapan (2021), the marketing mix is an important tool that marketers use to gain insights when making important tactical decisions which in turn consumers observe in the market. Some of these tactical decisions include but are not limited to product capabilities, prices, promotion, and distribution, among others. The authors of the article highlight pricing as a critical part of the marketing mix as the price set for products and services in turn determine the income that the business generates. According to the authors of the article, organizations set price policies based on a variety of things such as the market atmosphere, the quality or state of the goods, and the target market among other things. The price set for a particular product can affect the available selection. The price of education matters. For instance, lower-middle-income parents will opt to select schools that are relatively cheaper. On the other hand, upper-middle-income parents will choose to take their children to the best schools. If there is a relatively cheap higher quality school, then all parents regardless of income will take it into consideration.
Article 3
According to Gherasim and Gherasim (2019), there are various pricing strategies that companies engaging in international business can implement for their products. These strategies are dependent on the lifecycle of their products. For instance, there are strategies that can be implemented for new products, as well as those for products that are currently in existence. Some of the strategies that can be implemented for new products include the high price strategy which involves affixing high prices to new products if they have a high demand on the international market, outpacing the supply of the products. This strategy can greatly increase the profits of the business. Another strategy that can be implemented for new products is the low pricing strategy which gears more towards the penetration of the product into the market. This pricing strategy is recommended if and only when there is elastic external demand with regards to the price, profit growth has its foundation on sales growth, and costs that the company has incurred during production are low. Other pricing strategies for new products include the standard pricing strategy and the odd pricing strategy. Another one is the stratification price strategy. On the other hand, pricing strategies that companies can implement for currently existing products include the survival strategy and are implemented for products that are declining in the external market. The product price strategy is another strategy for existing products and it features the setting of different profit margins for products introduced into the foreign market at differing unit costs. Other strategies that the authors identified include the global product price strategy, captive price strategy, and differentiated pricing strategy, among others.
Price is an imperative constituent in marketing that resonates with scripture in I Corinthians 6: 20 that explains how believers (Christians) were bought at a price through the death of Jesus. As a result, they should honor God with their bodies that are the temples of the Holy Spirit. As Christians, our values are important and worth the suffering, victimization, and cruel death of Jesus Christ on the cross. Similarly, the price demonstrates the value of a product or service, as Jesus Christ’s death for sins signifies redemption at a great cost or value. Therefore, we are called to remain pure and righteous like Jesus in character as he decided to redeem our lives back to God’s love through great humiliation and suffering.
In conclusion, the price remains an important element in the marketing mix as it influences the choices and the actions connected to pricing and discrepancy. It remains important in marketing as it affects the profits and the market share, determines the marketing budget, and acts as a tool in competition. Finally, price relates to the cost or value of what Jesus had to undergo to redeem humankind.
References
Gherasim, D., & Gherasim, A. (2019). Strategies regarding prices within the international marketing. Economy Transdisciplinarity Cognition, 22(1), 62-67.
New international version (NIV).(2011). New international version (NIV) – Version information – BibleGateway.com. BibleGateway.com: A searchable online Bible in over 150 versions and 50 languages. https://www.biblegateway.com/versions/New-International-Version-NIV-Bible/#booklistLinks to an external site.
Nurman, A., & Harapan, E. (2021). Marketing Mix Implementation on Products, Prices, Places, Promotions In Marketing of Education Services. Jurnal Pendidikan Tambusai, 5(2), 5211-5220.
Trihatmoko, R. A., & Purnamasari, D. I. (2019). New product pricing strategy and product performance assessment in fast moving consumer goods.
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