The appropriate pricing of a product is an important factor in developing a successful marketing strategy. The price contributes to the profitability of the product and can deter competition from entering the market. A clear understanding of pricing concepts is essential in developing a strategy and marketing plan. Consider the information in this chapter when focusing on the following issues:
● Does your company currently compete based on price or nonprice factors? Should your new product continue with this approach?
● Discuss the level of elasticity of demand for your product. Is additional information needed for you to determine its elasticity?
● At various price points, calculate the breakeven point for sales of your product.
● Using Figure 19.8 as a guide, discuss the various factors that affect the pricing of your product.
