PRICING

The prize of a product is one of its most of important aspects for both sellers
and buyers. Price is the value that buyers exchange for a product in the marketing
transaction. Money usually is the value exchanged for a product that satisfies a
consumers need. The pricing is crucial for marketers because price is highly visible
to consumers and greatly affects purchasing decisions.

A firm cannot determine a product’s price without considering several factors

that affects price. Manager must take into account the use of price and non-price
competition, supply and demand, and consumer perception of price. Firm
competition based on price competition. It is policy of using price to differentiate
product in the market place. Generally they set price equal to or lower than
competitor's prices.

A policy of emphasizing aspects other than price, such as, quality, service and
promotion, to sell products is known as non-price competition. This strategy is
usual in building brand loyalty. A name, sign, symbol, or design that company
uses to distinguish its products from other is called brand. Firm usually want
exclusive use of their brands and takes steps to prevent others from using them. A
brand registered with the Patent and Trademark office is called a trademark. A
trademark, legally protected, can be used only by its owner.

(Taken from the text: “Product and Price" in English for Students of Business,
pp 87-88)

Price is the value for an item or product that is exchanged for money. The
price given for a good or service depends on the quality of the item,prices and
products given by the company as determinants of the existing competition in
the market.
EXERCIIISE

INFORMATIONAL QUESTIONS

1. What is price?
Answer : Price is the value that buyers exchange for a product in the
marketing transaction.
2. What is price concepption?

3. What is brand?
Answer : Brand is A name, sign, symbol, or design that company uses to
distinguish its products from other.
4. What is trademark?
Answer : Trademark is A brand registered with the Patent and
Trademark office

Exercise 2

Truue or False

1. (.T..) Price of t product is te most important aspects for sellers and uuyers
2. (.T..) Price affects greatlyy in purcasing desicion..
3. (.T..) Non-pricce competition are only quualityy
4. (.F...) Trademark ccan be used by anybodyy wo iikes.