In a partnership arrangement, what would YOU consider to be the most important element in driving business success? Explain and support your position with case example.
A partnership is an agreement in which two or more persons distribute the profits and liabilities of a business undertaking. Different arrangements are likely, for instance, some partners may perhaps have restricted liability, or all partners may share profits and liabilities evenly. As a result, pricing is the most important element in driving business success. Pricing is the process at which a business places the price at which it will put on the market its services and products, and might be a component of the marketing plan of a business (Nagle, Hogan & Zale, 2016). In putting prices, the business take into consideration market place, brand, superiority of product, market condition, the manufacturing cost, the price at which it could obtain the goods and competition. Since profit is the interest of every partner in a partnership, pricing is very important as it is the only revenue generating element among the four Ps.
Pricing has an insightful impact on the marketing policy and relying on the price elasticity of the product; it will habitually influence the sales and demand as well (Nagle, Hogan & Zale, 2016). However, this will in turn affect the income of the business since when the sales and demand are less there is no revenue generated. Additionally, pricing contribute to how consumer view a service or a product. For instance, when a product get priced at a high cost, it get perceived as high quality while that priced at low price get perceived as low quality. If a firm product’s price reflects the true value of the product, then the products get bought because most customers will refer them luxury thus making a good profit. Also, pricing is one area where minute modifications can set a business separately from competition.