CHAPTER OBJECTIVESChapter 6 introduces price as one of the marketing mix
variables. Pricing strategies are discussed in this chapter
in relation to overall organisational and marketing goals.
Pricing as a process is defined as setting or adjusting a
price charged to a customer in exchange for a good or a
service. The techniques used to determine price, as well
as the role of price in the marketing mix, form the basis of
this chapter. However, through the headline story and one
of the sportviews, the macro-perspective of achieving
positive overall outcomes is discussed as well. As will be
shown, the 'big picture' cost–benefit analysis should always
be the overriding measure of pricing effectiveness.
After studying this chapter, you should be able to:
1. distinguish between factors that influence the pricing
2. see pricing in the context of organisational strategy; 3. determine demand and supply relations and the price
sensitivity of markets;
4. apply a strategic pricing approach in setting or adjusting
the price of sport products.