Marketing discussion on price setting

A price-setting process is a sophisticated multi-step approach that has to take into account the external environment, competitors, and consumer demand for the product, as well as internal factors such as operating costs.

1. After summarizing the main steps of the price setting process and the most important aspect of each stage, choose one of those steps and discuss the relevant challenges that your organization may (or does) face while setting the price. Specifically mention the factors that the organization must consider in determining the price.  
1. Pricing Objective
2. Forecasting Demand
3. Estimating Costs
4. Competitive Analytics
5. Choosing pricing method
6. Establishing final price
 
2. In some cases a company has to cut its prices or react to price cuts initiated by competitors. What are the various strategies for and possible implications of such actions for the organization?    

You are expected to present research findings (from your company or industry, as well as academic) while answering this question.