Effect of Price on Sales Volume

Marketing mix refers to the set of actions or tactics that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix of Price, Product, Promotion and Place. Out of all the elements, we can obviously tell that the most important thing is of course, the price. Price refers to the value that is put for a product. It depends on costs of production, segment targeted, abilities of the market to pay plus a host of other direct and indirect factors. There can be several types of pricing strategies, each tangled in with an overall business plan. Pricing can also be used to differentiate and enhance the image of a product. However, all the elements of the marketing mix influence each other. Marketing mix needs a lot of understanding, market research and consultation with several people, from users to trade to manufacturing and several others.