What is the importance of price element of marketing mix?

or

Why is price so important in marketing ?

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Solution

Price is an important element of marketing mix due to the following reasons:

(i) It determines the sales volume and profit margin of the manufacturer/dealer.

(ii) It influences the competitive strength of a product.

(iii) It affects promotion and place components of marketing mix.

(iv) It determines the purchasing power and standard of living of consumers.

(v) Without pricing, there can be no marketing, as sales takes place after the buyer and seller agree on the price.

Suggest Corrections

Group A	Group B
a) Marketing b) Marketing Mix c) Price d) Physical distribution e) Durable product	1) Exchange value of goods 2) Cost of Commodity 3) One of the important elements of marketing management 4) An important instrument of employment 5) Warehouse 6) Channel of distribution 7) Vegetables 8) Machinery 9) Seller 10) Producer