Price is sum of all values consumers exchange for benefits of having or using product. Price is only element in marketing mix that produces revenues; all others represent costs. Importance of pricing arises when there is competition between marketers and is a vital decision area in marketing.
Definition: The amount of money charged for a product or service is called price.
Pricing objectives: Firms usually adopt profit optimisation rather than profit maximization. They may be long-term or short term but getting profit will be the objective for any firm. Apart from profit the other issues of concern are:
