CBSE Class 12 Marketing Factors Affecting Pricing Notes

Marketing
Download PDF

Download CBSE Class 12 Marketing Factors Affecting Pricing Notes in PDF format. All Revision notes for Class 12 Marketing have been designed as per the latest syllabus and updated chapters given in your textbook for Marketing in Class 12. Our teachers have designed these concept notes for the benefit of Class 12 students. You should use these chapter wise notes for revision on daily basis. These study notes can also be used for learning each chapter and its important and difficult topics or revision just before your exams to help you get better scores in upcoming examinations, You can also use Printable notes for Class 12 Marketing for faster revision of difficult topics and get higher rank. After reading these notes also refer to MCQ questions for Class 12 Marketing given on studiestoday

Revision Notes for Class 12 Marketing Factors Affecting Pricing

Class 12 Marketing students should refer to the following concepts and notes for Factors Affecting Pricing in Class 12. These exam notes for Class 12 Marketing will be very useful for upcoming class tests and examinations and help you to score good marks

Factors Affecting Pricing Notes Class 12 Marketing

CBSE Class 12 Marketing Factors Affecting Pricing Notes 1

The decisions related to price and pricing policies of a firm are affected by several factors present in marketing environment. A firm plans production keeping in view the customers' needs, market characteristics, competing firms, behaviour of suppliers and distributors for its product and certain legislative factors. These factors give important inputs to the management for marketing-decisions. A firm also gives due consideration to these factors while determining price of the product. These are studied under two categories-
• Internal factors
• External factors
 
A. Internal factors
 
Internal factors are the forces which are within the control of a firm up to certain extent. The firm can regulate and change these factors as per requirement. For example all the P’s of marketing mix, procurement of raw material, employment of labour and cost of production etc. not only determine the success of firm’s operations, but also have great influence on product pricing.
 
The factors can be discussed as following-
 
(a) Objectives of the firm: A firm may have various objectives and pricing contributes in achieving them. Firms may pursue different objectives such as maximizing revenue, maximizing profit, maximizing market share or maximizing customer satisfaction. The Pricing policy should be established only after clear consideration of the firm’s objectives.
 
(b) Role of Top Management: Usually, it is the top management that takes a firm’s pricing decisions. But pricing activities are so crucial for future sales and profits that a marketing manager has to remain involved with the pricing. The role of the marketing manager is to assist the top management in price-determination and ensure that pricing takes place within the policies laid down by top-management.
 
(c) Cost of the Product: There is a direct relation between the cost of production and price of a product. If the cost of acquiring material and manufacturing cost of the product are high, the price of the product in the market will also be higher and vice versa. The firm should also fix prices that are realistic, considering current demand and competition in the market.
 
(d) Product Differentiation: The price of a product also depends upon its specifications. Generally, producers add more and more features to their products to attract customers, and the customers pay a price for them. Therefore, a highly differentiated product will have more features and attributes, and a higher price than one which is less-differentiated.
 
(e) Marketing Mix: Price being an important element of the marketing-mix must be coordinated with the other elements- product, place and promotion. The price should be such that it covers the expenses on the other elements of the marketing mix and corresponds to them ideally. For example- a high-priced branded electronic product should be sold in high-end urban showrooms instead of rural markets; the promotion technique should be TV-advertising and not personalselling, etc.
 
(f) Size of the organization: If the size of firm is big and the scale of production is large, it can afford to set lower product price and increase its sales. On the other hand small sized firm keep high price of its products.
 
(g) Location of the organization: Location of the organization is an important determinant of the price of a product. The price and product-size will vary depending upon whether the market is located in a rural or urban area. For
example, in the kirana stores in smaller towns and villages, one will find the ₹1 or ₹2 shampoo-sachets instead of a big 200ml or 250ml bottle found in departmental stores in a large city of the same shampoo.
 
(h) Nature of Goods: If product is necessity good, firm may set a moderate price keeping in view social welfare purpose; but if the product is luxury good in nature
and is being demanded by high end consumers; its price will be high.
 
(i) Promotional programs: The extent of promotional programs and advertisement expenditure also influence the price of a product. If it is huge , the product will have high price and vice-versa.
 
B. External Factors-
 
External factors are forces which are beyond control of the firm. A firm cannot alter or change these factors or forces for its advantage.
 
These factors can be discussed as following-
 
(a) Demand: The market demand for a product has a direct impact on its pricing. Since demand is affected by prospective buyers, their incomes, tastes and preferences etc., they should be taken into account while making decision of pricing. For an
instance if the demand for a product is inelastic, as in case of necessity goods, a high price may be fixed. But if the demand for a product is elastic, i.e., changeable in response to change in price, the firm should not fix higher prices; rather fix lower prices to grab major market share.
 
(b) Buyers’ behaviour: Buyers’ behavior also affects the pricing decisions. If they are habitual of the product the price may be fixed high. Similar pricing decisions are taken by the firm, if buyers have a particular perception of the product being a symbol of prestige/ status, or utility, e.g. luxury cars.
 
(c) Competition: Market-competition plays a crucial role in pricing. In a highlycompetitive market, a seller’s objective is to give maximum utility at minimumpossible price. Each firm tries to outsell others offering lesser price and better
quality products in the market. Therefore, prevailing information about what price the competitors are charging for similar products and what possibilities exist for increasing/decreasing price also affect pricing.
 
(d) Raw Material or Input suppliers: Pricing decisions take into consideration three parties-the supplier of raw material, the manufacturer, and the final consumer. If the supplier charges a high price for inputs, the manufacturer shifts this burden to the consumer by charging a higher price for the final product. On the other hand, if a manufacturer is making large profit on a particular product, suppliers will also try to cash in on these profits by charging a higher price for the raw material. When this happens, the manufacturer would only want to absorb the additional cost and not increase the prices further.
 
(e) Prevalent Economic Conditions: During a boom-period in the economy, when market-conditions are favourable due to ‘bullish attitude’ or inflationary trend, firms can afford to fix higher prices of their products. On the other hand, during slumpperiod when market-conditions are un-favourable due to ‘bearish attitude’, firms have to lower the prices of products to keep the business going and to clear off their old stocks.
 
(f) Government Regulations: If Government policies exert regulatory pressures, promote anti-price rise sentiment etc, then the companies cannot fix a higher price to capture the market. On the other hand, if government policies are supportive and promote businesses through healthy competition in the market, then firms can fix higher prices.
Knowledge Assessment – II
 
Fill in the blanks-
 
1. The decisions related to price and pricing policies of a firm are affected by --------------present in marketing environment.
 
2. Firms may pursue different objectives such as maximizing revenue, ------------------, maximizing market share or maximizing customer satisfaction.
 
3. If the cost of acquiring material and -------------- of the product is high, the price of the product in the market will also be higher.
 
4. The product price should be such that it covers the -------------on the other elements of the marketing mix.
 
5. If buyers are habitual of the product the price may be fixed ----------------
 
6. Favourable market-conditions due to ‘--------------- or inflationary trend, encourage firms to fix higher prices of their products.
 
7. If the supplier charges a high price for inputs, the manufacturer shifts this burden to the ------------- by charging a higher price for the final product
 
8. If the demand for a product is inelastic firms fix a -------------of the product.
 
9. Supportive government policies ------------ businesses through healthy competition.
 
10.Competitive firm tries to outsell others offering -------------- and better quality products in the market.
 
Answers: 1.several factors, 2. maximizing profit, 3. manufacturing cost, 4. expenses, 5. High 6. bullish attitude, 7. Consumer, 8.high price, 9. Promote, 10. lesser price


Please click on below link to download CBSE Class 12 Marketing Factors Affecting Pricing Notes

Class 12 Marketing Notes
CBSE Class 12 Marketing Emerging Trends in Marketing Notes
CBSE Class 12 Marketing Factors Affecting Pricing Notes
CBSE Class 12 Marketing Managing Product Life Cycle Notes
CBSE Class 12 Marketing Meaning and Importance of Price Notes
CBSE Class 12 Marketing Meaning and Importance of Product Notes
CBSE Class 12 Marketing Packaging and Labelling Notes
CBSE Class 12 Marketing Place and Distribution Notes
CBSE Class 12 Marketing Pricing Notes
CBSE Class 12 Marketing Product Classification Notes
CBSE Class 12 Marketing Product Life Cycle Notes
CBSE Class 12 Marketing Product Notes
CBSE Class 12 Marketing Promotion Notes
CBSE Class 12 Marketing Types of Pricing Notes

More Study Material

CBSE Class 12 Marketing Factors Affecting Pricing Notes

We hope you liked the above notes for topic Factors Affecting Pricing which has been designed as per the latest syllabus for Class 12 Marketing released by CBSE. Students of Class 12 should download and practice the above notes for Class 12 Marketing regularly. All revision notes have been designed for Marketing by referring to the most important topics which the students should learn to get better marks in examinations. Studiestoday is the best website for Class 12 students to download all latest study material.

Notes for Marketing CBSE Class 12 Factors Affecting Pricing

Our team of expert teachers have referred to the NCERT book for Class 12 Marketing to design the Marketing Class 12 notes. If you read the concepts and revision notes for one chapter daily, students will get higher marks in Class 12 exams this year. Daily revision of Marketing course notes and related study material will help you to have a better understanding of all concepts and also clear all your doubts. You can download all Revision notes for Class 12 Marketing also from www.studiestoday.com absolutely free of cost in Pdf format. After reading the notes which have been developed as per the latest books also refer to the NCERT solutions for Class 12 Marketing provided by our teachers

Factors Affecting Pricing Notes for Marketing CBSE Class 12

All revision class notes given above for Class 12 Marketing have been developed as per the latest curriculum and books issued for the current academic year. The students of Class 12 can rest assured that the best teachers have designed the notes of Marketing so that you are able to revise the entire syllabus if you download and read them carefully. We have also provided a lot of MCQ questions for Class 12 Marketing in the notes so that you can learn the concepts and also solve questions relating to the topics. All study material for Class 12 Marketing students have been given on studiestoday.

Factors Affecting Pricing CBSE Class 12 Marketing Notes

Regular notes reading helps to build a more comprehensive understanding of Factors Affecting Pricing concepts. notes play a crucial role in understanding Factors Affecting Pricing in CBSE Class 12. Students can download all the notes, worksheets, assignments, and practice papers of the same chapter in Class 12 Marketing in Pdf format. You can print them or read them online on your computer or mobile.

Notes for CBSE Marketing Class 12 Factors Affecting Pricing

CBSE Class 12 Marketing latest books have been used for writing the above notes. If you have exams then you should revise all concepts relating to Factors Affecting Pricing by taking out a print and keeping them with you. We have also provided a lot of Worksheets for Class 12 Marketing which you can use to further make yourself stronger in Marketing

Where can I download latest CBSE Class 12 Marketing Factors Affecting Pricing notes

You can download notes for Class 12 Marketing Factors Affecting Pricing for latest academic session from StudiesToday.com

Can I download the Notes for Factors Affecting Pricing Class 12 Marketing in Pdf format

Yes, you can click on the link above and download notes PDFs for Class 12 Marketing Factors Affecting Pricing which you can use for daily revision

Are the revision notes available for Factors Affecting Pricing Class 12 Marketing for the latest CBSE academic session

Yes, the notes issued for Class 12 Marketing Factors Affecting Pricing have been made available here for latest CBSE session

How can I download the Factors Affecting Pricing Class 12 Marketing Notes pdf

You can easily access the link above and download the Class 12 Notes for Marketing Factors Affecting Pricing for each topic in Pdf

Is there any charge for the Class 12 Marketing Factors Affecting Pricing notes

There is no charge for the notes for CBSE Class 12 Marketing Factors Affecting Pricing, you can download everything free of charge

Which is the best online platform to find notes for Factors Affecting Pricing Class 12 Marketing

www.studiestoday.com is the best website from which you can download latest notes for Factors Affecting Pricing Marketing Class 12

Where can I find topic-wise notes for Class 12 Marketing Factors Affecting Pricing

Come to StudiesToday.com to get best quality topic wise notes for Class 12 Marketing Factors Affecting Pricing

Can I get latest Factors Affecting Pricing Class 12 Marketing revision notes as per CBSE syllabus

We have provided all notes for each topic of Class 12 Marketing Factors Affecting Pricing as per latest CBSE syllabus