Pricing (verb): determining how much, when, where and how a buyer is willing to pay. Aim to capture the total value of the proposition or encounter, not just the core product/service itself. Making pricing decisions is one of the more visible and instantaneous actions available to managers. In the search to improve financial performance through revenue and profit maximisation, few business decisions can have a more rapid or dramatic impact on profitability than pricing management. In addition, prices can send signals to markets and customers about a company and its product/service attributes e.g. perceived value, positioning, image, availability and exclusivity. So, the act of 'pricing' is much more than just setting a price, and includes: Pricing objectives : financial and non-financial e.g. specific profit margin; image. Pricing tactics : e.g. price leadership, skimming off high prices, loss-leader low prices. Pricing structures : architecture of pricing mix e.g. bundling, setting different prices for each customer/group. Pricing levels : actual prices for individual or bundled products and services as per pricing structures. Pricing promotions : e.g. discounts, rebates, incentives. Therefore pricing should be considered to be a strategic-level variable and an integral part of a company's overall strategy, in turn linked to competitive positioning, target customers and other strategic issues. ...