PRICINGPricing is one of the four p's of the marketing mix. The other three aspects are product management,promotion, and place.PRICE“In economics and business, the price is the assigned numerical monetary value of a good, service or asset”.The concept of price is central to microeconomics where it is one of the most important variables inresource allocation theory (also called price theory).PRICING DEFINED“Is the manual process of applying value to purchase and sales orders”.MARKETING MANAGERS MUST ADDRESS TO THE FOLLOWING –VIS-À-VIS PRICING:• How much to charge for a product or service?• What are the pricing objectives?• Do we use profit maximization pricing?• How to set the price?: (cost-plus pricing, demand based or value-based pricing, rate of return pricing, or competitor indexing)• Should there be a single price or multiple pricing?• Should prices change in various geographical areas, referred to as?PRICING DEFINED“Is the manual process of applying value to purchase and sales orders”.MARKETING MANAGERS MUST ADDRESS TO THE FOLLOWING –VIS-À-VIS PRICING:• How much to charge for a product or service?• What are the pricing objectives?• Do we use profit maximization pricing?• How to set the price?: (cost-plus pricing, demand based or value-based pricing, rate of return pricing, or competitor indexing)• Should there be a single price or multiple pricing?• Should prices change in various geographical areas, referred to as?FROM THE MARKETERS POINT OF VIEWAn efficient price is a price that is very close to the maximum that customers are prepared to pay.In economic terms, it is a price that shifts most of the consumer surplus to the producer.People will buy a premium priced product because:PSYCHOLOGICAL PRICINGRetail prices are often expressed as odd prices: a little less than a round number, e.g. $19.99 or £6.95.Psychological pricing is a theory in marketing that these prices have a psychological impact that drivesdemand greater than would be expected if consumers were perfectly rational. Psychological pricing is onecause of price points.