Price is the amount of money required for a product or service, or more broadly defined, the sum of all the values that customers give up to obtain the benefits of owning or using the product or service. It is the only element of the marketing mix that generates revenue; all other elements represent costs.
Within the marketing mix (4Ps), price is the most flexible element and can be changed quickly. Strategic pricing requires a balance between perceived customer value, the company’s costs, and competitors’ prices.
