hi everyone hope you're doing great we are in marketing mix and today's introduction is on price and specifically we're going to learn about price and understanding why is it important and what are the factors to consider when setting a price okay let's begin the right price could attract the right customers to purchase purchase the right product because they would be willing to pay for the product that has the right solution to the customer's wants and needs so basically price is very important part of the marketing mix because it has two very important factors one is looking at how much the business would be able to benefit from it but the other more important part is the fact that customers right would find it worthy for them to spend that amount of money if that product also is priced right and besides that it is the right solution to what they are looking for okay now if you look on the right hand side there is a pencil there priced you can call the pen priced five dollars right so is it the right price for that pen right setting a suitable price is important to reflect the solution and the value of the right product making the marketing mix successful so which means the price not only should it be right in that sense but also it gives the right value so if it is a five dollar pen then it should work like a five dollar pen in the sense where it may be you know the function wise maybe normal above average in a normal pen or a pencil that is priced at one dollar right if you put two pens of this looking similar but different price you know priced differently you would be you know moving it back and forth trying to find out what does this five dollar pen or pencil do okay so that's where the additional value or where you've learned about added value is also very crucial when setting a price okay so why is price a part of a marketing mix and why is it very very important why is pricing important okay because the right price can influence sales and profits so if you saw those two pens just now but if you don't see any difference in terms of the value that they bring you would go for the one dollar pen okay and also it has a psychological impact on customers pricing it right make it sound a little bit more cheap by putting a five dollar white pen and a one dollar pen uh or a pen price zero point nine nine cents for example brings a bit of an impact to how we see it says oh that's a bit more cheap than one dollar all right and it's important to ensure that the price changed is matched with the rest of the marketing mix so for a business when they you know play around with price you want to make sure that whatever new price they're going to put out there in the market somebody what uh you know covers up they cut the it matches with you know how they're going to brand it market it place it you know the other four parts of the marketing mix okay now as you can see here this is a five dollar pen again and now i have another pen um it looks almost the same but a different color but it is 99 cents so this is an example of how it can psychologically influence consumers to buy at 0.99 because it's cheaper than a dollar all right and this is what it means that it has the power to influence sales and profits now let's move on what are the factors that will influence pricing decisions so in making a deciding on the right price what would a business look and what will they consider okay they will look at how much they're spending to make this particular pen or pencil that look at who are the other competitors you know who are also producing this particular pencil right um price elasticity of demand how the change in price will affect demand and they'll also look at if it's a new or existing product so to decide whether the price should be low or high also the objectives of the marketing department what are we going for actually what do we want right and we will also want to compare it with competitors prices so that we know where we are um whether you know a quick hike in price would cause customers to actually go to our competitors instead okay and also the perception that the business has how people see the business as a whole okay so this will affect um the the type of decisions that the business would make okay which is whether you would set the pricing high because you want to cover up your cost and your profits so you can you know cover up that and still see some profits coming in you want to set price high as well because you want to show that this pen is actually five dollars and it's very exclusive right and setting price you can also decide to sites to set the price low okay maybe the 0.99 just now would work to compete with existing products or new products or setting different prices for products sold in different markets so you may want to look at five dollars in this particular area in asia for example and then you know at 299 in a different market altogether okay those are ways or pricing decisions that you can make all right um in setting a price for your particular product and we have come to the last slide which is a good buy slide if it was too fast i'm sorry i hope you're able to follow and i'll catch you again in the next slide or on next video presentation on price thank you so much and have a great day ahead