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4. 
Ware housing:
The commercial system of any country depends on three major systems 
viz, trade, transport and warehousing. 
The process of manufacture of goods is continuous but they are not 
consumed immediately, in almost all the companies. There is always a time gap 
between production and consumption. For example, the supply of food grains 
is remarkably high during harvesting of crops, but the total output cannot be 
consumed immediately. Substantial part of output is kept aside for future 
demand. Therefore, there is every need to preserve the goods till the period of 
consumption. 
Storage adds time utility to the goods by making them available at a time 
they are required. Storage of goods is usually done at a place called 
“Warehouse”. 
The team warehousing is a combination of two terms ‘Ware’ and 
‘housing’. The world ‘ware’ refers to goods. Therefore, warehouse can be 
defined as the ‘place suitable for preserving the goods and warehousing is the 
activity involving storage of goods’. 
Thus, the warehousing is an important segment of trade and commerce 
and it removes the hindrance of time. 


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4.7
PRICING 
Every marketer and organization, whether a profit seeking organisation 
or non-profit organisation, has to set a price for its products or services. 
Price is the value of a product or service expressed in monetary terms. It 
is the consideration which the buyer has to give to the seller for purchasing a 
product or utilizing a service. 
We are concerned with price in different ways, in our life. We pay the 
bill of the provision store for the purchases made from it, rent to the landlord in 
whose building we live, fee to the doctor when we consult him and bus fair to 
the conductor when we travel by a bus. All these are the prices of different 
products and services we consume or utilize. 
The salary of a business executive or a Lecturer for a lecture in a college 
is the price of his services and the wage paid to a labourer is the price of the 
work done by him. 
‘Pricing’ is the function of determining the value of a product or service 
in monetary terms by its marketer before it is offered to the target consumers or 
customers for sale. While making the pricing decision, the management of a 
company has to establish the pricing objectives, identify the factors governing 
the price and ascertain their relative importance, determine the product/service 
value in monetary terms and formulate pricing policies and strategies with a 
view to effectively employ price as a strategic instrument in marketing the 
products/services of the company. 

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