1. Understand the role of price in the marketing mix and to a company.
2. Understand the different pricing strategies that a small business can follow.
3. Understand price-quality signaling and its importance to the pricing decision.
4. Understand that the price of a product or a service lets customers know what to expect from a business.
Marketing, whether online or onground, is the only activity that generates revenue for most
small businesses, and the price element in the marketing mix accounts for that. Price can be
defined very narrowly as the amount of money charged for a product or a service. However,
price is really more than that. It is “the sum of all values (such as money, time, energy, and
psychic cost) that buyers exchange for the benefits of having or using a good or
service.” [1] Ultimately, the meaning of price will depend on the viewpoints of the buyer and the
seller.