Could You Describe The Importance Of Pricing In Sales Function Of Business.

Following are the various types of Pricing.
Pricing:
The successful functioning of the business depends upon the pricing strategies of the business. The management must give full attention to fix the prices of their products. Different pricing strategies are there like.
Market Price:
In a free market price of a commodity is determined according to the equilibrium of demand and supply forces.
Cost plus Pricing:
Cost plus Pricing is the cost of manufacturing a product plus a profit markup.
Penetration Pricing:
In order to enter in the market, price of the product is set lower as compare to competitors.
Price Skimming:
Price Skimming is where a high price is set for a new product in the market.
Competitive Pricing:
Competitive Pricing is when the product is priced in line with or just below competitor's prices to try to capture more of the market.
Promotion Pricing:
Promotion Pricing is when a product is sold at a very low price for a short period of time.
Psychological Pricing:
Psychological Pricing is when particular attention is given to the effect that the price of the product is directly proportional to the quality of the product. High price means high quality and low price means low quality.