This is for Principles of Marketing. 3-5 sentences per questions should be okay.
ID: 339857 • Letter: T
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This is for Principles of Marketing. 3-5 sentences per questions should be okay. Why are pricing decisions important to an overall national economy? Why are they important to the individual form setting the price? This is for Principles of Marketing. 3-5 sentences per questions should be okay. Why are pricing decisions important to an overall national economy? Why are they important to the individual form setting the price? This is for Principles of Marketing. 3-5 sentences per questions should be okay.Explanation / Answer
When it comes to Business management, pricing is one of the most important decision that is to be taken. To the national economy, pricing decision is important because it is a complex process that takes into consideration the accounting and marketing aspects as well along with economics, all of which, together encompasses the National Economy of a nation. The market mechanism in the Economy impact the pricing decisions besides various other factors such as the cost of input, the degree of competition, the risk taking ability of the Firm, etc. Based upon the pricing, the sales performance could be judged. Better the sales, more is the production to meet the market demand. This leads to more circulation of materials into the production cycle, more employment of channel intermediaries in the network, various promotion measures to further boos the sales, etc. All these activities have an economic mean to gain. This in turn helps the economy to grow and prosper because it contributes to the National Production of the Country or the Gross Domestic Product of the Nation. Further, if the Firm attempts to exploit the consumers, the Government can pitch in to regulate their pricing of the commodities, if need be. Hence pricing decisions are important to an overall national economy.
To an individual form setting the price, pricing decisions are extremely important because based on it, the marketing decisions for the product is taken. The Profit margins, sales volumes, Positioning of the product, Market share, etc. are all dependent upon the pricing decisions. Therefore pricing strategies are formed to best suit the aims and objectives of the Firm in terms of conducting the business.
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