THE ROLE OF MARKETING ANALYSIS IN THE PRICING PROCESS: INTEGRATION WITH COST ACCOUNTING

Abstract

Introduction. Pricing decisions require the coordination of market evidence with information on cost structure and profitability. Treating marketing analysis and cost accounting as separate information systems may produce a price that is attractive to customers but financially unsustainable, or one that covers costs but is inconsistent with demand, perceived value and competitive conditions. Purpose. The study aims to substantiate an integrated marketing-and-accounting framework for pricing that combines data on demand, competitors’ prices and customers’ willingness to pay with information on production cost, relevant costs, contribution margin and target profitability. Methods. The study applies theoretical generalisation, analysis and synthesis, comparison and a systems approach. These methods are used to compare cost-based, competition-based, value-based and contribution-margin approaches and to construct a consistent sequence of pricing decisions. Results. The proposed framework links four stages: marketing analysis; accounting and analytical justification; formation of the pricing decision; and control with feedback. The study clarifies that an economic price threshold is decision-specific. For short-term decisions when spare capacity is available, relevant incremental variable costs and any additional fixed costs are decisive; for long-term decisions, the management calculation should cover full costs, including production, administrative and selling costs relevant to the decision, and the target return. Marketing analysis determines the feasible market range by assessing demand elasticity, competitive alternatives, perceived customer value and willingness to pay. The novelty lies in matching the cost base to the decision horizon and introducing two consecutive tests of a proposed price: market acceptability and economic feasibility. This prevents the production cost reported under financial accounting rules from being treated as a universal price floor. The framework supports the justification of discounts, special orders, product-mix decisions and price adjustments, while preserving control over contribution margin and long-term profitability. Conclusion. Effective pricing requires an integrated information framework linking marketing, accounting and management functions. Its use strengthens the consistency, transparency and adaptability of pricing policy; however, practical implementation requires enterprise-specific data, sensitivity analysis and subsequent validation of pricing outcomes.