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Manac Plc. Models and concepts affecting the pricing decisions taken by organizations, critically reflecting upon their usefulness. - Essay Example
Author : nataliehuel
Finance & Accounting
Pages 12 (3012 words)
The Maniac Plc deals with the sale and production of normal electrical goods. A full evaluation of costing requirements has conducted by the organization to recognize those regions which have not met financial plan expectations…
The pricing policy of a firm is affected by a number of factors which contains the variable and fixed costs of the firm and the ecological factors which contains competitor analysis and legal analysis. Pricing models can be utilized to explain, forecast or explain pricing circumstances, or to prescribe pricing decisions. Irrespective of their planned use, however, models are basically abstractions of actuality. Even though they are less difficult than the real world, models should have relevant possessions of the realism they are calculated to represent. A number of more particular criteria served as the foundation for evaluating the pricing models are reviewed. Two criteria are valid to the assumptions on which the form is based. Such assumptions must be stated openly so that the user is cognizant of their existence and so able to assess their relevance and importance. Secondly, the assumptions must be realistic. “The pricing decision is a critical one for most marketers, yet the amount of attention given to this key area is often much less than is given to other marketing decisions. One reason for the lack of attention is that many believe price setting is a mechanical process requiring the marketer to utilize financial tools, such as spreadsheets, to build their case for setting price levels” (Pricing Decisions 1998). ...