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Nnnnn

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Submitted By khalguess
Words 1991
Pages 8
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Name: Meryem Guessous
ID: L0088MIMI1012
Class: Manegirial ecnomics
Date: 18th April 2012
Lecturer: Ellie Samsar

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Computer Market

The free market is one in which producers are free enter and exist. Free market is a modern concept that facilities buyers and sellers by limiting their restrictions. The advantage of free market for consumers is that they can get products at inexpensive prices. The free market is characterized with intense competition that results in price reduction. In the computer industry, manufacturers are facing the challenge of technology advancements. However, the technological advancements do not allow producers to increase the price of their product because the technology becomes obsolete quickly. Product price is an important element of purchase decision as well as of marketing mix. In developing countries where prices of products form a large role in influencing the consumers, price is prevailing among other elements of marketing mix which are product, promotions and distribution. Before setting the prices of product, there are various factors that must be considered by marketers, the most important among them is enviornmental factors which includes competition. From the viewpoint of competition, the firms must consider the impact of their pricing strategies on the prices of competitiors or they must set prices keeping in mind the strategies of competitors. There are different pricing strategies which includes skimming pricing and market penetration prices. In skimming strategy, firm set the higher prices of their product and target to those consumers who are price sensitive. In penetration strategy, firms choose the lower prices for their product to penetrate in to the market and target to those consumers who are price sensitive. The normal price at which the product is offered is list price however

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