Before we get into the main discourse of this program, let's look at what is pricing and why do we need to learn about it. Now, in marketing we say that marketing is a function of four P's, product, place promotion and price. Now, these four P's actually constitute what we know as a marketing mix. So we can consider that these four P's are the four variables, which need to be altered in order to get the maximum out of a marketing strategy. Now product is something what we want to sell places where we want to sell it. promotions.

Our promotions include things like advertising, public relations, sales, promotions, etc. and prices what we want to charge the customer for our product or services. Now price among these four variables is the element which can be most easily changed. It is very difficult to change the product, it takes time. It is also not so easy to change the place where we want to set up Nuts, promotions take time to create like advertisements take time to create etc. But price is something which you can change very easily.

And this is the variable which is changed most frequently in order to gather the maximum amount from our products. Also price is very important in the sense that price multiplied by the number of units sold determines the total revenue what we will gain from this product or this marketing study. So, that is why it is very important to learn about pricing. In the next lecture we will see how we do a cost based pricing. Thank you for listening