What Is Pricing?

Profit Margin

A ratio of net profit (after taxes) divided by net sales that reflects the profit per dollar of sales

Pricing Objectives

Goals a company hopes to accomplish through its pricing strategies

Promotion Decisions

Marketing element referring to selection of the various types of communications that marketers use to inform, persuade, or remind customers of their products

Product Decisions

Marketing element referring to what goods, services, or ideas a business will offer its customers

Promotional Budget

The amount of money a business plans to spend on promoting its goods and services during a certain period of time

Pricing

is a marketing function that involves the determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.