Pricing policies and procedures

by Nessim Hanna

Undoubtedly the most visible of the decisions made by management, pricing has a direct impact on a firm's market performance and its overall level of profitability. The overpowering forces of the marketplace make it imperative that pricing decisions be recognized as marketing decisions rather than accounting or finance decisions. The risks are too great to rely on a simplified cost-plus approach. The theme of this book is that the price for a product meshes marketing and manufacturing strategies in maximizing the long-term profitability of the firm within the constraints of cost structure and the marketplace. Rather than look at the mechanics of pricing, this text shifts the emphasis to the meshing of the total product concept with the concepts of value and quality as interpreted by price while looking at other factors which affect decision-making with regard to price.