| A | B |
|---|
| 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 |
| exchange price | , the buyer has decided that s/he is willing and able to pay that amount of money to obtain the product, while the seller has decided that s/he will accept that amount as payment |
| optimum value | Buyers and sellers must feel that they are receiving the most value from the product |
| Characteristics of effective pricing | Realistic prices, Flexible prices, Competitive prices |
| Pricing | affects product decisions in terms of research, materials used in production, profit decisions, customer decisions, and company image |
| Promotion | choice of medium, amount of money spent, and time allocated to promotion |
| Place | terms of choice of transportation channels and where products are offered |
| Factors that affect prices | Costs Supply and demand, Economic conditions, Competition ,Government regulations ,Channel members, Company objectives and strategies |
| How many Ps | 4 |
