Internal factors that affect pricing decisions include marketing objectives, marketing mix strategy, costs of production, organizational considerations, and the product life cycle stage. Pricing must be coordinated with other elements of the marketing mix like product, promotion, and distribution. Management must also consider costs of production, who sets prices within the organization, and how pricing strategies vary depending on whether a product is in the introduction, growth, maturity, or decline stage of its life cycle.

1. WELCOME

2. INTERNAL FACTORS AFFECTING PRICING

3. 1. MARKETING OBJECTIVES
Before setting a price, the company must
decide on its strategy for the product. If the
company has selected its target market and
positioning carefully, then its marketing mix
strategy, including price, will be fairly
straightforward.

4. 2. MARKETING MIX STRATEGY
Price decisions must be coordinated with other
variables of the marketing mix like product design
promotion and distribution. So many decisions
made for any other variable in the marketing mix
could affect or influence pricing decisions.

5. 3. COST OF THE PRODUCT
The company wants to charge a price that both
covers all its costs for producing, distributing,
and selling the product and delivers a fair rate
of return for its effort and risk. A company's
costs may be an important element in its pricing
strategy.

6. 4. ORGANIZATIONAL CONSIDERATIONS
Management must decide who within the
organization should set prices. Companies
handle pricing in a variety of ways. Normally
overall pricing strategy is formulated by top
level management and actual fixing of prices is
done by lower level management

7. 5. PRODUCT LIFE CYCLE
Price is influenced by the life cycle stage of a
product. Price is varied according to the stage
in the life cycle. Different pricing strategies are
followed during introduction, growth, maturity,
and decline stages of the product life cycle.

8. THANK YOU