Melsoft Study

Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product. Pricing is a fundamental aspect of product management and is one of the four Ps of the marketing mix, the other three aspects being product, promotion, and place. Price is the only revenue generating element amongst the four Ps, the rest being cost centres. However, the other Ps of marketing will contribute to decreasing price elasticity and so enable price increases to drive greater revenue and profits. Pricing can be a manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. An automated pricing system requires more setup and maintenance but may prevent pricing errors. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. Thus, pricing is the most important concept in the field of marketing, it is used as a tactical decision in response to changing competitive, market and organizational situations. Internal Assessment Criteria and Weight IAC0401 Concepts, issues and examples of ethical and unethical conduct are defined and described IAC0402 The impact of these factors on an employer and an employee is discussed IAC0403 The impact of lapses in ethical behaviour on the organisation and individuals in the organisation is described IAC0404 Processes which employer organisations use to support ethical conduct in the workplace are evaluated IAC0405 The importance of the responsibility to consistently comply to the industry ethics and codes of conduct within the business ecosystem, is understood and described IAC0406 Own moral compass is developed and applied to ensure privacy, accountability and confidentiality within the industry

KT0412 - Pricing