The Market Price: part of the Marketing Mix, (in the Marketing Plan) continues our endeavours in writing a business plan. The Business Marketing Plan focuses on the various considerations needed when pricing a product for sale, part of your Marketing Strategy.
Price
The marketing plan should incorporate your businesses pricing policy. This is crucial if price is part of your marketing strategy.
The price is the value that you put on your product. It is what the customer is willing to pay for that product to satisfy their needs. Remember that your product price and benefit will be compared to those of your competitors.
Price and Cost
Establish the relationship between price and cost. The price and cost must be very detailed. You must factor in the costs of manufacturing, the packaging, promoting and distributing the product.
Remember Total Cost = Fixed Costs + Variable Costs
Be realistic and specific in your costing, and it is always a good idea to err on the side of caution and over inflate some of the costs.
Pricing and Competition
You must highlight the relationship of price between that of your product and that of your competitors (if possible).
Are you going to differentiate yourself by selling at a higher price than your competitor by offering more quality or more benefits?
Are you going to differentiate yourself by selling at a lower cost than your competitor, trying to gain some of their market share?
Decide on what pricing strategies your business will be using.
For further information on Pricing Strategies go to
Wikipedia - Pricing
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Market Price
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Writing a Business Plan
