The price is a variable of the marketing that comes to synthesize, in great number of cases, the commercial policy of the company. On the one hand, we have the needs of the market, fixed to a product, with certain attributes; on the other, we have the production process, with the consequent costs and determined objectives of yield. For that reason the one in charge will have to be the company, in principle, to fix the price that considers more suitable.

For client potential, value of product declares in terms objectives and subjective, since she has a very particular scale at the time of computing the different attributes there from which is compound, of the expensive or cheap denomination of that she gives them. Nevertheless, for the company the price is a very important element within its strategy of marketing mix, along with the product, the distribution and the promotion.

Therefore, we can define the price like the quantitative estimation that takes place on a product and that, translated to monetary units, expresses the acceptance or not of the consumer towards the set of attributes of this product, taking care of the capacity to satisfy needs.

15.1. Factors that influence in the fixation of prices

The fixation of prices takes with himself desire to obtain benefits on the part of the company, whose income come determined by the amount from realized sales, although does not have a direct relation with the benefits that it obtains, since if the prices are lifted, the total income can be high, but that this repels in the benefits will depend on the suitable determination and balance between the denominated “areas of benefits”.

Therefore, a rational policy of prices must be fitted to the different circumstances from the moment, without considering the system of used calculation solely, combined with the indicated areas of benefit. For a easier understanding we will indicate that these areas are within a context of forces summarized in:

• Objectives of the company.
• Costs.
• Elasticity of the demand.
• Value of the product before the clients.
• The competition.

15.1.1. Objectives of the company

Normally, the fixation of the prices is in interaction with other elements of marketing mix, such as distribution objectives, of publicity, financiers, and that are:

• Is persecuted a short term increase at the cost of the rate of penetration?
• It is desired to give priority to a concrete product of range and to cause the obsolescence of others?
• Is wanted a fast penetration in the market and to restrain possible competitors?

15.1.2. Costs

They suppose the determination of limits inferiors below which one is not due to descend, under pain to put in danger the yield of the business. Unless, harming this yield, the company wishes that the price plays a strategic role, and how? Through:

• Fast penetration in the market.
• To be able to establish relations with a new client or new segments.
• To secure to experience taking care of the demand and capacity of production, in relation to the competition.

15.1.3. Elasticity of the demand

It is the knowledge of the degree of sensitivity of the sale of a product, between changes undergone by some of the different internal factors that act envelope she. Their analysis will contribute information on possible oscillations in the volume of sales of a product, when the price varies in a certain percentage or when a budget is increased like, for example, the one of publicity.

15.1.4. Value of the product in the clients

In order to establish a policy of prices a good knowledge of the behaviors of purchase of the clients is precise, of the value that stop they represents the sold product and its translation in the “price”, as well as the image that is had of them. Products, but “contributions to the activity of the client” are not sold. This perception depends, since we have said previously, on factors subjective objectives and allows the practice of differentiated prices, taking care of the value attributed to the product by the different segments from the market.

15.1.5. Competition

The companies, besides considering other factors, establish their prices based on the actions or reactions of the competition. Subjects as the rise or loss of prices reaches their strategic importance based on the possible reactions of the competitors and substitute products and the elasticity of the demand. It is possible to be indicated, therefore, that the factors of fixation of prices can be classified of the following form:

• Internal factors:

- Costs of manufacture more costs.

- Calculation of the deadlock.

- Yield capital invested.

• External factors:

- Elasticity demands/price.

- Value perceived by the client.

- Competition.