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7.6 Summary

You are now familiar with some basic principles and practices of pricing tangible products and services. The most important thing to realise is that prices are not set in a vacuum. A firm cannot simply set a price it wants. In a very real sense, the market sets the range of prices for the firm to work within, given its particular advantages and the objectives. Setting the right price for a tangible product or service is thus both an art and a science.

We have now completed our discussion of the second P in the marketing mix, and turn next to the third P, place, or what your text refers to as marketing logistics networks.

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