Price is an important mix in marketing mix. Price is taken to be such a standard on which the success of marketing program depends. So, marketing manager should pay attention to price mix while formulating marketing program.
Commonly, price means the cost or monetary amount to be paid for receiving certain goods or services. In other word, price means the exchange of things with value among parties involved in business. In the economic context, price means value of some thing expressed in money or any other monetary medium of exchange.
Tuition fee for education, interest on principal amount, rent for building, fare for taxi, fee for doctor's service, premium for insurance, tariff for electricity use, wages for workers, commission for seller, membership fee for club etc are the examples of price. In marketing, monetary amount paid for receiving goods or services or ideas is called price.
Also Read: Factors Affecting Price Determination
The meaning of price depends on perspective. The meaning of price may be different in the viewpoint of customers and producers. Consumers pay money for goods or services according to their buying decision. So, in their viewpoint price is the expense paid for receiving benefit. In other word, for the consumers the paid for any goods or service is the comparative value of the benefit got from it. But in the producers' viewpoint, price means the volume, cost and margin of the goods sold out.
Also Read: Importance Of Pricing
Pricing means the task of determining reasonable price of particular goods or services. Customers should pay certain amount to the producers or sellers for their goods or services they provide. For this, certain monetary value or exchanging capacity of the goods or services should be determined on the basis of their importance. The same is called pricing. Pricing in marketing is to take an important strategic decision.