Pricing is one of crucial activities that must perform by company. Pricing strategy has a close relation to marketing strategy. Therefore, as a Marketer, you have to comprehend pricing strategy. 

I will share you about pricing basic concept and pricing strategies in marketing. At this time, I will explain you in question and answer style. Based on my experiences, Q&A form is easier to understand than long article.

Let's start. 

Pricing concept

What is price at consumer's standpoint?
For Consumer, price is monetary cost which is spent to obtain and utilize the product.

What is price at company's viewpoint?
For Company, price is a way to differentiate his offer with other companies.

What are the factors of pricing determination?
There are many factors to determine a price, they are:

• Deregulation
• The level of growth
• The level of competition
• Company's opportunity to strengthen the market and dominate the market
• Marketing strategy
• Company's vision and mission
• etc.

Why a pricing is important to concern?
A pricing is important for companies because:

• Price affects a number of sale 
• Price affects financial performance 
• Price has important impact to customer
• Price has important outcome in branding process
• Price can be used as substitute of product image (customer's image to the product)
• Price can make people easy to determine a product in their buying process.

Pricing in marketing

Price has important role in marketing (market your product). It depends on:

• Target market (who is the buyer)
• Type of product
• Product distribution channel

In positioning strategy's perspective, what is function of price?

Price function in positioning perspective are:

• Product image: customer assume that high price product indicates that the product has good quality.
• Competition element: Pricing strategy can be utilized to overcome the competitor.
• One of ways to increase the sale: Good positioning increase a number of selling.

What are the goals of price determination process?

There are several goals of price determination, they are:

• Profit oriented
• Volume (number of sale) oriented
• Brand Image oriented
• Price stabilization oriented
• To prevent the competitor enter and dominate the current market
• To maintain customer loyalty
• To encourage re-sale
• etc.