Marketing Methods:
Price fixation procedure is also affected by other elements of marketing such as distribution system, excellence of salesmen engaged, quality and quantity of advertising, sales promotion efforts, the type of packaging, product segregation, credit capability and customer services provided. The various marketing methods such as distribution system, excellence of salesmen, advertising, type of packaging, customer services, etc. also affect the price of a product. For example, a firm will charge high profit if it is using luxurious material for packing its product. Another example, if a company provides free home delivery, it has some of flexibility in fixing prices.
Similarly, uniqueness of any of the elements mentioned above gives the company a competitive freedom in fixing prices of its products.
