Themain stakeholder includes the management team of an organization. However, the pricing decision does not come directly from the management team. This decision is based on the results from a team that is appointed to evaluate the possibilities of different pricing suggestions. The evaluation considers many factors including the market price of related products, the market perception of the pricing system, and the level of competition in the market and most importantly the possibility of making the required profits from the sales (Paull, 2009).
In an argument by William (2010) factors considered in pricing revolve around maintaining the organization profile and profit levels. How to price commodities is significantly influenced by external environmental factors. These factors are effectively evaluated in order to reach a consensus on the most appropriate price. The paper will provide an insight on pricing decisions with the inclusions of various methodologies of pricing strategies. Additionally, the paper will evaluate the methodologies and come up with the most effective recommendation on the best pricing strategy.
In the words of Nagle amp. Holden (2002) pricing strategies is an operation that requires more than management in the internal operations of the organization. The author further argues that pricing decisions are intentionally influenced by factors outside the control of an organization. William (2010) explains this point further by arguing that factors affecting pricing decisions are mostly influenced by the external business factors. However, with a proper market analysis, an organization can be in the best position to control the pricing trend of a particular trend of product. Nagle amp. Holden (2002) supports this argument by providing an example by evaluating the influence of Coke and Pepsi in the soft drinks market.