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How pricing your product is a part of marketing

When most people think of marketing, they think of one thing-advertising. Marketing means, basically, that you've got a product or a service and you want to sell it and so you come up with a bunch of TV commercials and magazine ads and presto!-marketing. But the truth is, marketing is a little more complicated than that. Marketing means a whole lot of things, because marketing is the way businesspeople prepare a product or service for the market in general. Let's look at one little aspect of marketing. Let's look at the question of how pricing your product is a part of marketing. We'll look at three or four ways in which pricing is a key part of successful marketing.

1. Again, when we're marketing something we're preparing something for the market in general. Marketing, therefore, raises questions such as: How will we respond to the public's response to our TV commercials and magazine ads? Let's say we get 1,000 orders for X. How are we going to make 1,000 of X, and send it to 1,000 places? Etc. And so pricing gets in there, too. Pricing is a very complicated part of marketing. Ask yourself next time you go shopping: Who decided that this would be the price for my shampoo? Who exactly honed in on $49.99 for this outdoor grill? Surely they didn't pull the numbers out of a hat? Surely.

2. Let's stick with the grill, just for kicks. Let's say we're producing the best outdoor grill the world has ever seen. It does something to hot dogs, hamburgers, bratwursts, etc., that the world's basically unprepared for. We're sure to sell a million of these things. How are we going to market them? We've got ads here, ads here, we've got a great website set up with a surefire delivery system, we've got the guys and gals in place who'll build the things, etc. And everything we just mentioned falls under the umbrella of marketing. Now we come to pricing. Now we come to what may be one of the most difficult, subtle, backbreaking tasks of the marketer-fixing a price on a product.

3. Sure, our grill may be the Best Grill Ever, but the pubic doesn't know that yet. They know what we say about our grill, but advertisements say things all the time that turn out to be mild exaggerations, to say the least, if not cunning and evil deceptions. Our grill may be worth $75.00, all told, but it's new, and who's going to pay $75.00 for something new and untried when they can get (what appears to be) the identical thing for $49.99? This is the sort of question a marketer asks him or herself when it comes to pricing and marketing.

4. So, the question becomes-what's the most we can ask for our grill without making people roll their eyes and walk away. After all, our grill does do things that Brand X doesn't do-and we're putting it in bold red letters right on the box-and we've got a great return policy (also part of marketing). We can, therefore, sell our grill for more than $49.99. But how much more?

5. If we really want to be accurate, if we really want to do our homework, we might think of conducting a small poll via a local telemarketing agency to see just how much a person might pay for our grill. We'd get a feel, then, for what's realistic and what isn't when trying to price our grill. We could send out a mailer, a brief, easy little form, and ask John Q. Public for his opinion. This is all part of the game of marketing. It's an answer to the question of how pricing a product is a part of marketing.

6. Pricing a product is a part of marketing because it's part of the process of preparing our product for the market and the market for our product. Pricing a product is one of the essential parts of marketing, and is often the key to success or failure in marketing.

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