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Title: Price considerations

Submitted by
Saeed-ullah

Submitted to
Ms. Shanila Yousuf

Reg # 9124

Section # Null

Date: 20/12/2020

Department of Computer Science

City University of Peshawar
& information technology
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Q: What are the internal factors that we have to keep into consideration when we

are setting the price of our product? Name them.

1. Company’s marketing objectives

The company must decide on its product plan before setting prices. If the company has carefully

selected its target market and positioned it the marketing-mix strategy, including price, would be

reasonably clear. For instance, if Toyota chooses to manufacture its Lexus cars to compete in the high-

income segment with European luxury cars, this means charging a high price. Travel Lodge positions

itself as a motel that provides budget-minded travelers with economical rooms; this position allows a

low price to be paid. The pricing policy is therefore primarily decided by previous market positioning

decisions. The organization could, at the same time, pursue additional targets. The clearer and

organization is about its priorities, the easier it will be to set prices. Examples of common goals include

longevity, maximization of existing benefit, and maximization of market share and leadership of product

quality.

2. Marketing mix strategy

Marketing expert view price as a very important element among other three element of

marketing mix. In some industries a firm is used price reduction as a marketing technique. Price must be

carefully coordinated with other marketing mix.

3. Costs

Costs and price are closely relate to each other. The most important factor is the cost of the

production. In market firm may try to decide a price which are more realistic, considering current
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demand and competition in the market. Ultimately price will go to the public and their capacity will fix

the cost otherwise the product will be flapped.

4. Organizational considerations

In small companies CEO or top management are setting the price while in large companies

Divisional or product line managers set the price? Some industries have pricing department like steel, oil

companies etc. sales manager finance manager accountant have also effects on pricing.