Importance Of Pricing In Marketing

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Price as the value placed on a product exchanged between buyer and seller. Pricing is also a key element in the marketing mix because it relates to maximize profits and sales and increase the market share. Marketers know that, among the variables that affect consumers’ purchase decision is the price, which has a significant influence on communication factors concerning the advantages of purchasing a product or services. Marketers use some pricing strategies to attract consumers’ attention to their product or services. There are New Product Pricing, Psychological Pricing and Price Discounting. One of the purposes of the pricing practice is to elicit a direct impact on the purchase behavior of the consumer. Marketer put full effort to improve the strategies in order to reach the consumers who plays important roles as user, payer and purchaser effectively. They promote their strategies to consumers by advertisement like TV, radio, newspaper, magazine and Internet in order to promote and increase perception to their products and brands. Promotion pricing strategy is a good idea of the best way to reach consumer and increase public relations. Marketer should be analysis and do research to gain information what actually consumers need, what they think to satisfying and fulfill requirement consumers. So that also able fight with other competitors in the market.

Main Body

By using Psychological Pricing Strategy, it encourages purchases based on emotional rather than rational
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