Pricing is an important part of marketing which must not be handled with levity.For a profit making organisation,setting price plays a key role in determing how succesful the company will be.
The price of NBC's products are affected by many factors which will be discuss in details.The first factor is the cost of production,for the company to make a reasonable gain,the company has to consider this factor when selecting price.A company is tempted to increase the price of the product if there is demand for its products and vice versa.Another factor that is really affecting the pricing of my company's product is the price of competitors,a company will want to gain a competitive advantage in term of price,so raising the price will adversely affect the sales of the company.The other factors that has affect and still affecting pricing incude,quality of products,skill level of the company etc.
The pinciple of pricing the company uses is the current profit maximization,which means to increase the current profit,taking into account revenue and expenditure.The pricing strategy the company applies is the competitive pricing,where in the company uses the the competitors retail price as the bench mark of deciding the price of their products.
For most of NBC's customers price of their products is directly propotional to their income and they tend to purchase the company's products because they believe the quality is up to their standard.
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