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Pricing of any product or service is a trickiest thing that marketing team has to resolve. Pricing strategy is one of the basic 4Ps of marketing – Products, Price, Promotion and Place. Pricing strategy involves enormous amount of data crunching, research to understand market conditions and customer behavior and also risk-taking ability of the organization. Pricing strategy has a direct bearing on the earnings of the company.

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Pricing strategy is one of the most critical decisions that management of the company has to grapple with. Right pricing depends on numerous conditions like geography, promotions, product mixing, brand building, etc. Since the pricing impacts the earnings of the company and its future growth, the company management has to carefully consider all the factors and arrive at the smart and effective pricing to win the heart and minds of the customers.

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