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Price is nothing but cost + profit = price . Price is the medium for exchange of value between buyer and seller. It is an influencing factor in consumer decision making relates to a purchase. Objectives of pricing: ●       Increase the sales ●       To maximize the profits ●       To increase the market share ●       To satisfaction of consumer ●       To meet the competition Pricing methods: Variable cost Cost based pricing Fixed cost Demand based pricing Competition based pricing               skimming pricing Strategy based pricing                      penetration pricing Demand based pricing: ●       By customer ●       By product or service ●       By location ●       By time ●       By quality Competition based pricing: parity pricing or going rate pricing pricing below competitive level or discount pricing pricing above competitive level or premium pricing Factors effecting in service pricing: organizational factors Marke

As the service revolution gather momentum more 4 more service business should discover new tool for techniques to cope with new challenges. When competing in a market place. Service firms have a wide range of alternatives available to it they. Competing for market share:           The service firm may for market share in one or many markets at the same time have expanding both the service offered and the segments served. Competing for reach:           The competition here focuses on the size of the area from which it can draw customers and how far customers will travel to use the service. Competing for geography:           It is an assumption that the service formula is easy to copy and being second to enter into market is a dis-advantage. The strategy is to sell intensively and spread out geography. Positioning a service in the market: The process of designing a service has an impact of the image of the mind of the customer. It is generally agreed that teem the s

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Market segmentation is the process of dividing the total market for goods or services into several smaller groups, such that members of each group are similar with respect the factors influence that demand market segment as an element of marketing strategy , recognize the wisdom of specializing to suit the needs of a segment of the market than trying to do “ all thing to all people ” the market segment is a group of actual customer who similar needs, the wants the preferences and buying behavior. Basics of segmentation:                                                      Segmentation Customer characteristics                                      customer response Demographic                                                                 benefits Psycho graphic                                                                usage Geography                                                                     loyalty Process: