The Importance of Price to Marketing Managers
Prices are the key to revenues, which in turn are the key to profits for an organization
Revenue is the price charged to customers multiplied by the number of units sold. Revenue is what pays for every activity of the company: production, finance, sales, distribution, and so on. What’s left over (if anything) is profit
Managers usually strive to charge a price that will earn a fair profit. To earn a profit, managers must choose a price that is not too high or too low, a price that equals the perceived value to target consumers