ABSTRACT
The end price of a company’s products or services determines of the amount of money the company can make. Company objectives are guided and influenced by market conditions and price must be a function of such conditions, so the achievement of company objectives often necessitates compromise over the amount of profit that can be realised. The importance of price as a function of the marketing mix varies from market to market, but it is not always the most important factor in the buyer’s decision-making process. For the seller, as price determines the amount of profit or loss, it is crucial that pricing is approached in a disciplined and orderly manner. Price provides revenue, whilst other elements of the marketing mix represent costs (see Jobber, 2004, p. 375).
