Formulating a Price in the Launch Phase of the Product Life Cycle

Abstract

The issue of pricing is one of the most important issues and problems in applying the marketing concept in operations and general functioning of legal subjects. The situation regarding this issue within our domestic enterprises is on unenviable level, i.e. the companies apply too simplified methods in pricing their products/services, they create prices that involve excessive costs, do not take into account the other elements of the marketing mix, include very few criteria for establishing the price and it is difficult for them to allocate the total profit contribution of each product/service individually. Even less, enterprises pay attention to the compliance of the price with the phase of the life cycle in which the product is.