{"id":1531,"date":"2025-07-21T12:36:38","date_gmt":"2025-07-21T12:36:38","guid":{"rendered":"https:\/\/www.edudorm.com\/learn\/?p=1531"},"modified":"2026-01-15T15:28:00","modified_gmt":"2026-01-15T15:28:00","slug":"pricing-policy-in-business","status":"publish","type":"post","link":"https:\/\/www.edudorm.com\/learn\/study-hub\/business-and-management\/pricing-policy-in-business\/","title":{"rendered":"Pricing Policy in Business"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Setting a Pricing Policy<\/h2>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Determining a pricing policy is important in any organization. It does not only contribute to the organization\u2019s profitability but also influences the success of a product. Price is the most vital element in the pricing policy of markets. The pricing policy affects the market share and the organization\u2019s effectiveness. Price is a flexible tool as it can be changed quickly as compared to other policies. Price affects demand, profitability, market insight and the brand setting directly.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Objective of the Pricing Policy<\/h2>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defining of a product price is based on planned objectives and the strategic purposes. The company\u2019s long term plan is to advance itself as the prominent cable service provider in America. The organization also needs to become the topmost choice among the customers. By doing this, the organization will need a huge development in customer based that will need investments to develop its network services. Writers who offer <a href=\"https:\/\/www.edudorm.com\/edudorm-services\/assignment-services\/management\/pricing-strategy-assignment-help\">pricing strategy assignment help<\/a> at Edudorm essay writing service notes that the planned objectives of the company is to reach the huge part of the American houses while the strategic objectives is to develop its clients base so as to have some profits so that the company will expand its network to new areas. Based on these two objectives, the price objective of the company is to give attractive prices to its customers for it to increase customer base by about 25% as they have their expected profit of about 22% and this is after the tax (Kotler &amp; Keller, 2016).&nbsp;<\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The organization has its planned objectives to become the topmost customer prime and wants to advance its networking in other areas. Thus the organization is focusing not only to advance its clients base but also increase its profitability. The pricing policy objective funds the long and the short term pricing objectives of the organization (Kotler &amp; Keller, 2016).&nbsp; &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Determining Demand on the Pricing Policy<\/h2>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each price that is implemented by the company will make a different level of demand and this will have a different effect on the company\u2019s marketing. The demand curve of the company shows the most possible demanded quantity at the quality prices. The demand of the company is exceeding the supply thus having a few available products and expanding the price of the product and vice versa. The organization is creating a reproducing deficiency for them to have a stronger hold on the industrial price level. Experts who offer <a href=\"https:\/\/www.edudorm.com\/edudorm-services\/assignment-services\/management\/marketing-assignment-help\">marketing assignment help<\/a> at Edudorm essay writing service indicates that the demand of the network is leading to the establishment of new modern services which is currently having a greater impact to the network of the lower density. This force impacted to the growth of a continuous device of modernization which has caused the introduction of new network services that are demanded by the informed customers (Kotler &amp; Keller, 2016).&nbsp;<\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The integration of these services has a negative impact on the price. This shows that the demand and the integration had a negative influence on the price of the main service. Due to this fact, the machinist who introduced the modern incorporation with the best activities had an enticement for changing the quality services and for inspiring demand of services through giving smaller basic services and by implementing lower prices (Kotler &amp; Keller, 2016).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Estimation of Costs on the Pricing Policy<\/h2>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The main problem that we have in the company is that we don\u2019t know what the modernization of the services will cost or if it will satisfy our requirements in the future. Our estimated cost that the company is expected to pay is $170 to $650 per any service given to the customers and the date cabling installation. Thus the company has to charge its customers a single price for the whole project, meaning that the bigger the project, the more the price to the customers (Kotler &amp; Keller, 2016).&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Analyzing Competitors\u2019 Costs, Prices, and Offers<\/h2>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This is the vital factor in the organization that is needed in setting the prices of the services. Based on the prices that have been determined by the market demand and the costs, the company is focusing on its competitor\u2019s costs, prices and the probable price reactions that the customers will take into account. Authors who offer <a href=\"https:\/\/www.edudorm.com\/edudorm-services\/assignment-services\/management\/business-development-assignment-help\">business development assignment help<\/a> at Edudorm essay writing service points that the demand of the company services is setting a limit and the costs are setting the base to pricing policy while the competitors\u2019 price is giving the point in which the company is setting prices. As we learn the price and the quality of our competitor\u2019s services and product by having the comparison staff to compare the price, we ought to increase our prices as our services are more modernized that theirs. Our services are not substandard thus we have to charge more than our competitors (Kotler, 2007).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Selecting a Pricing Policy<\/h2>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There is a pricing model for the pay of the service of the organization that is selected as the pricing policy which is known as Markup pricing. It is a method that advances a standard markup of the product cost in the organization. This method has enabled the company to seek compensation from the network distributor in exchange of them retransmitting a sign. This method has also highlighted on the cost saving for the users. Tutors who offer <a href=\"https:\/\/www.edudorm.com\/edudorm-services\/assignment-services\/management\/4p-of-marketing-assignment-help\">4P of marketing assignment help<\/a> at Edudorm essay writing service acknowledges that it was proofed that the method would save up to 13% of the customer\u2019s monthly cable subscription rates if the customers can implement on the networks offered by the company. This pricing will be a cost saving process and will lessen the revenues for programs (Kotler, 2007).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Select a final price<\/h2>\n\n\n\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The final price of our company is based on the pricing policy, quality of our services and the comparison to our <a href=\"https:\/\/www.bdc.ca\/en\/articles-tools\/marketing-sales-export\/marketing\/pricing-5-common-strategies\">competitors<\/a>. Our customers will pay for higher prices due to factors such as advertising, the quality of the company services and the market position. Thus the price of our services will be higher than that of our competitors as the company is providing the best and the modernized services in which all our customers are willing to pay (Kotler, 2007).\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">References<\/h3>\n\n\n\n<p>Kotler, P. (2007). <em>Marketing management: Analysis planning implementation and control<\/em>. New Delhi: Prentice Hall of India.<\/p>\n\n\n\n<p>Kotler, P., &amp; Keller, K. L. (2016). <em>Marketing management<\/em>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Setting a Pricing Policy &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Determining a pricing policy is important in any organization. It does not only contribute to the organization\u2019s profitability but also influences the success of a product. Price is the most vital element in the pricing policy of markets. The pricing policy affects the market share and the organization\u2019s effectiveness. Price [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[646],"class_list":["post-1531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-and-management","tag-pricing-policy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pricing Policy in Business - EDUDORM FREE ESSAYS<\/title>\n<meta name=\"description\" content=\"Determining a pricing policy is important in any organization as it contributes to the organization\u2019s... 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