Pricing Basis: In general, there are two main factors to consider in the price basis, the internal factors of the company and external environmental factors.

Company Internal Factors

Destination Marketing Company

The main factors that determine the pricing of marketing objectives of the company. It could be an objective of maximizing profits, business survival, reaching a significant market share, creating leadership in terms of quality, overcoming the competition, achieving social responsibility, and so on.

Marketing Mix Strategy

Price is only one element of the marketing mix. Therefore, the price must be coordinated and supportive of “marketing mix” of others, ie the product, distribution and promotion.

Cost

Cost is a factor that determines the minimum price should be set so that the company did not experience losses. Therefore, each company must pay great attention to this aspect of cost structures (fixed and variable), and types of other costs, such as miscellaneous fees, additional costs, opportunity costs, controllable costs, and replacement cost.

Organization

Management must decide which organization should set the price. Each company manages the pricing problem according to their path. In small companies, generally prices are set by management. In large companies, often manipulated by pricing issues of division or product line manager. In industrial markets, the seller (sellers) to pelangganya bernegosiasidengan identified the beach (beach) a certain price. In an industry where pricing is a key factor in the general society has its own pricing departments are responsible for the marketing department or management. Another Pihakpihak affect the pricing of sales managers, production managers, financial managers and accountants.

The External Environmental Factors

The Nature of Markets and Market’s Demand

Every society needs to understand the nature of the market and the demand facing it, whatsoever, including perfect competition, monopolistic competition, oligopoly competition or monopolistic competition. Another equally important factor is the elasticity of demand.

Competition

There are several issues that affect the strength of competition in the industry, competition in the relevant industry, product substitution, suppliers, customers and the threat of new entrants. This requires the existence of information in analyzing the characteristics of competition, among others, the number of firms in the industry, the relative size of each member / consumers in a number of industries, differentiation products, and easy to enter the industry concerned.

Other Elements of the External Environment

In addition to the factors above, companies must also take into account the factors of economic conditions (inflation, recession, interest rates), policies and government regulations, and social aspects (environmental concerns).