THE REALITIES ABOUT POULTRY The Modern Farm - The Realities About Poultry_Seco | Page 141

Sales growth, where the intention is expansion of the firm and its market share.
Stability or survival, where the need is either to maintain a position of strength or to ride out a
period of difficulty.
These objectives are translated by marketing management into pricing policies. They address such
issues as price relationships between products or the use of price reduction and discounts. The
policy must be fully integrated with the firm’s overall marketing intentions and other elements in the
marketing mix.
Importance of price to marketers

Price is often the only element of the marketing mix that can be changed quickly to respond to
changes in demand or to the actions of competitors, unlike product features and channel
commitments.

Price is a key element in the marketing mix because it relates directly to the generation of total
revenue. The total revenue, in return, depends on three constituents which may be expressed in
the following formula.

The price affects an organization’s profit, which are its life-blood for long-term survival. Price
affects the profit equation in several ways. It has a direct bearing on the profit as is explicit from
the above equation. It indirectly affects the quantity sold.

Price has a psychological impact on customers and hence can use it symbolically. There is a
belief that high price is positively correlated to superior quality and buying high-priced articles is
a status symbol. On the contrary, low prices emphasize a bargain to many consumers. In both
ways, price can have a strong effect on sales.

Pricing decisions are of paramount importance in the marketing strategy. Like the other
elements in the marketing mix, the price of the product should be related to the achievement of
marketing and corporate goals.
Branding Poultry Farm
Brandingis:

The process involved in creating a unique name and image for a product in the consumers'
mind, mainly through advertising campaigns with a consistenttheme.
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