The price we pay is the value we associate with any product, whether it is a good or a service. This is the compensation paid to a person or authority for purchasing an item or service. The greater the value associated with the product, the higher the price. The pricing process depends on factors which can be categorized into internal and external factors. Internal factors include those factors that are within the control of the organization or producer, while external factors are influenced by the market or factors that are beyond the producer's control. Internal Factors Internal factors include the organization's marketing mix and organizational objectives. The product itself has a big influence on the price. If the product offers a lot of features, the price will likely be high. If a sporting event offers a lot of entertainment to the audience, the price is likely to be high. The promotion part is closely related to price since the seller usually promotes their product on the basis of price. Many product advertising campaigns are based on the price reductions offered, for example the sale of sporting goods at half price will be widely advertised in stores. The distribution of the product determines the pricing policy because if the seller decides to sell the product to exclusive stores, the price may be high. Production costs also affect prices, because the higher the costs, the higher the price. Organizational objective is also a major influencing factor for pricing. If the organization strives to maximize profits, then the price will be high. However, if the seller's goal is to survive, then the price will be set... middle of paper ... ticket prices are set very high and organizers use the prestige pricing strategy to indicate that the event will be a spectacle in itself. In another case, organizers implement a price-skimming strategy for matches featuring big rivals. The matches between Real Madrid and Barcelona are very busy to attract the best of the spectators. Therefore, the right pricing strategy depends on the type of event or asset presented.BibliographyAllen, S. (nd). Entrepreneurs on About.com. Retrieved from Pricing Methods: http://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy_2.htmKotler, P. (nd). Pricing strategies. In P. Kotler, Principles of Marketing. Pearson Higher Education.Professor of Marketing. (nd). MarketingTeacher.com. Excerpted from Pricing Strategies: http://marketingteacher.com/lesson-store/lesson-pricing.html