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Price definition or Pricing, one of the Marketing Mix components, looks for the company profit maximization, in coherence with the market, the competition and taking into account the product complete cost. An effective selling price has to achieve following company goals: To respect company profitability objectives, he has to maximize the margin and thus to be superior to the total of unit costs related to its manufacturing, its distribution and its commercialization. To fit with the reality of the market (its structure, its competition, its reaction to the valuable evolutions) and with the price which the consumer is prepared to pay for this product To be coherent with the others Marketing Mix constituents
It is thus fundamental that Logistic activities of the company collaborates with the Marketing function, to give it a clear visibility on the unitary logistics complete cost related to the product in given hypothesis of volume, so allowing it to model its margin in a reliable way.
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