marketing mix - price

Marketing Mix - Pricing There are a number of pricing policies which a business may adopt. The choice of policy depends on: ­ Market-led pricing This method is where a business accepts the price at which competitors are charging at sets its price at the same level or slightly lower. This is usually used in a market were there is a strong number of competitors. My product would fit into this category as there is a lot of competitors in the drinks market. ­ Cost-based pricing Were you work out the businesses total fixed and variable costs and then adding on the percentage profit. The calculation is as follows- ­ Skimming This is often used in a market were there is little competition. A high price is set initially when the product gets a bit older people aren't as willing to pay as high a price so the price is lowered. The large price at the start gives a feeling of high quality. This would not be very suitable for my product as there is two many competitors in the drinks market and this method is usually used on new hi-tech products. * Penetration pricing This is where a low price is set initially in order to gain customers then the price increases when the customers realize the quality of the product. This method could be used for my sports drink product as I could set the price low to begin and then increase the price when the customers realize the

  • Word count: 501
  • Level: GCSE
  • Subject: Business Studies
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The Marketing mix Price

Task 6 - The Marketing mix Price Cost based - It is when a business works out the total cost of producing a product by adding together all the fixed variables costs. Then it adds an amount for a profit, often called mark up, to give the selling price. The mark up is usually expressed in the form of a percentage. For example, if the kosher food shop works out that the total cost for producing a kosher chicken is £10. They decide they want to add a 10% mark up to create profit for them. This would give the following calculations: Total cost £10 Percentage mark up per chicken 10% of the total cost £10 x 10 divided 100 = £1.00 Total price = £11.00 Market based - It is when a business looks at how much other business are selling a product for and selling the same product for around the same price or maybe a bit lower to gain the advantage amongst its competitors. For example if a kosher chicken at La Boucherie cost £11.00, my shop will sell it at £10.60. This generally happens in an environment where there is a lot of competition and opposition. Promotional pricing - Pricing to promote a product is a very common application. There are many examples of promotional pricing including offers such as Buy One Get One Free and 2 for the price of 1. Skimming pricing - Charge a high price because you have a large competitive advantage. The high price attracts new

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  • Level: GCSE
  • Subject: Business Studies
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Marketing Strategy - the marketing mix - promotion - product - price - place

My Marketing Strategy As previously mentioned in this report, there are several aspects, that play a big part in a products successes or downfall. These are classified as the marketing mix, and are again shown below, Pricing Pricing is one of the key features of the marketing mix. The producer sets the price of a product with great caution, as incorrect pricing can result in product failure, and sometimes even market failure. If the price of a product is too high, then consumers will simply not be willing to pay for it, and yet if a product is priced too low, people will view the product as cheap, and so it will loose its exclusivity, and demand from consumers. There are many different pricing methods used by companies today including, Cost-plus pricing This involves setting a price by calculating the average cost of producing a product, and then adding a "mark-up" (profit margin) on to that price. If it costs £35.00 to produce a small television, firms usually add up to 100% profit margin on top, and so the consumer would have to pay £75.00 for the television. Cost plus pricing has a number of disadvantages though such as it doesn't take into account the needs, wants and opinions of the consumers. Market orientated pricing These methods are those which are based upon a careful analysis of the market at which products are aimed, and so are much more effective

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  • Level: GCSE
  • Subject: Business Studies
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Marketing Mix. There are four Ps to the marketing mix. They are product, price, place and promotion.

Marketing Mix Kotlers definition of marketing mix - The set of marketing tools that the firm uses to pursue it's marketing objectives in the target audience. There are four P's to the marketing mix. They are product, price, place and promotion. The Product is something that has features on it that suits your customer to his or hers needs and wants. The price is decided on the quality of the product. The place is where the product is sold and distributed. The promotion is the advertisement for where and what a product is. Products There are four different levels of a product. They are core product, actual product and the augmented product. The core product is all the benefits that a product could bring to a customer and if they will want it. The actual product is the item itself. It's if it is branded by a good business or if it has features that other products similar to it don't have. The augmented product is any additional things that you can get from a product such as free delivery and warranty. Some businesses will sell only one product and not make any others. But most businesses sell a wide range of different kinds of products. If a business sells for example cars then they will make different kinds of cars suited to there customers. Such as a family car or a work car. The product life cycle is development, introduction, growth, maturity, saturation and decline.

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  • Level: AS and A Level
  • Subject: Business Studies
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Marketing Mix

Principles of Marketing Coursework: The Marketing Mix Sumeera Noreen 07815383 The marketing mix, or the 4Ps as it is most commonly known as, is a "set of controllable tactical marketing tools...that the firm blends to produce the response it wants in the target market." (Kotler et al, 1994, p.48) It consists of four major elements: product, price, promotion and place, which are used in order to satisfy the customers in the marketplace. Getting the mix of the four elements right is crucial in order to successfully market a product. The concept of the marketing mix was first introduced by Borden in 1965, which originally included twelve variables of marketing. McCarthy reduced the model to four elements, that is the 4Ps. These four variables are interrelated; decisions in one area will affect decisions in another. "Marketing mix variables are often viewed as controllable variables because they can be changed. However, there are limits to how much these variables can be altered." (Dibb et al, 1994, p.17) Product refers to any type of good or service that the company wants to sell. The success or failure of the product depends on the product's features and design, branding and packaging. The product is the most important element of the marketing mix because if the product is not good enough and fails to satisfy the needs of the customers, then no amount of promotion,

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  • Level: GCSE
  • Subject: Business Studies
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marketing mix

Running head: MARKETING MIX PAPER Marketing Mix Paper University of Phoenix Sustainable Customer Relationships - MBA 570 Marketing Mix Paper The 4 P's, also known as the marketing mix, is a concept created by Neil H. Borden. According to author Laura Lake, "your marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives" (Lake, 2009, ¶ 1). The four variables that make up the 4 P's are Product, Price, Place (Distribution), and Promotion. This paper will further detail each element of the 4 P's and will provide a description of Caterpillar Inc., and how each element of the marketing mix impacts the development of Caterpillar's marketing strategy and tactics. Organizations must understand that creating an effective marketing mix will require experimenting and market research in order to see increased results. By using variations of the 4 P's, organizations will gain the ability to reach a magnitude of consumers within their targeted market. Furthermore, the 4 P's were designed to focus on an organization's target customers to identify the value of the product or service and to determine how well the product or service will be received. Product The first variable, Product can be defined as the products or services an organization offers to its customers. Product is concerned with creating the right product or service for

  • Word count: 1374
  • Level: University Degree
  • Subject: Business and Administrative studies
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Marketing Mix.

Marketing Mix is the combined elements of the product put together which will determine the success of the product. For example if the product has a very good marketing mix then that product is more likely to succeed it will do this by increasing potential customers and then converting them to actual customers. If the marketing mix is not carried out with long thought then the product may fail eg by not making many any sales and profit and this is why having the correct marketing mix is a vital component when producing and selling a product There are four main aspects when it comes to Marking mix these can be collectively known as the four P's: * Product: this can be further broken down into 3 levels which are the core layer: benefits of the product, tangible layer: the features of that product ie what it does, the augmented layer: any other services or benefits that are obtained when buying the product. * Price: One main factor of the price for the product will depend mainly on competition prices and after the product has made a successful impact on the market then the price will be more influenced by supply and demand. * Place: This is the location of where the product is presented and will then increase or decrease potential buyers. * Promotion: This gets your product noticed and if presented well it will increase the amount of potential buyers for your product.

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Marketing Mix.

Tom O'Connor Cyril Rayan MKT/421 September 23, 2003 Marketing Mix Marketing mix is a term used by businesses to promote their products or services. The various elements to the marketing mix are referred to as the four P's: Product, Place, Price, and Promotion (Fastlink). These aspects are how customers learn about a company's products or services. The Product portion of the marketing mix refers to the researching of consumers' product needs and coming up with a product that has the characteristics to accommodate those needs. This is a very important element of the marketing mix because it directly involves creating products and services that satisfy consumers' needs and wants. The Place portion of the marketing mix equation has to do with making the product available when it is desired and at a convenient or proper location. The product needs to be made available in sufficient quantities to satisfy customer needs. Putting the product in the customers' hands can be the factor that makes the sale. The Price facet of the marketing mix is relative to the activities associated with establishing pricing policies and determining product prices. Price is a critical component of the marketing mix because consumers are concerned about the value obtained in an exchange. Price is also an important factor when considering the competition. The Promotion variable relates to

  • Word count: 883
  • Level: University Degree
  • Subject: Business and Administrative studies
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marketing mix

What is meant by the Marketing Mix? Do you think that the original form of the Mix needs any changes in it if it is applied to service industries? The term marketing mix refers to the four major areas of decision making in the marketing process that are blended to obtain the results desired by the organization. The four elements of the marketing mix are popularised by McCarthy in 1960. The marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market (P.Kotler). Each element in the marketing mix is-product, price, promotion, and place. Marketing managers make numerous decisions based on the various sub-elements of the marketing mix, all in an attempt to satisfy the needs and wants of consumers. The first element in the marketing mix is the product. A product is any combination of goods and services offered to satisfy the needs and wants of consumers. Price is simply the amount of money that consumers are willing to pay for a product or service so it is an important element of the mix. Promotion is used to create awareness and stimulate demand and the most visible of 4 Ps in the marketing mix. Promotion is a communication process that takes place between a business and its various publics. Publics are those individuals and organizations that have an interest in what the business produces and offers for sale. Thus, in

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  • Level: University Degree
  • Subject: Business and Administrative studies
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marketing mix

Running Head: Marketing Mix Marketing Mix Paper Marketing/MKT-421 Marketing Mix Paper Have you ever watched a commercial on TV and wondered how somebody created some of these crazy ideas/schemes to entice people to buy things? Make no mistake about it, it's not just some lucky person developing slogans; it's a specialized team that is highly trained to analyze customer needs and carefully develop a strategy to market their goods/services in the economy. The field of marketing is fast becoming the most effective way for businesses to improve their overall performance to compete in today's global economy. Most successful companies have learned by trial and error that catering to needs of their customers, providing quality goods/services, and providing good customer service strengthens continued sales and profits. Marketing oriented companies are also customer oriented and take into account customer needs by focusing on creating goods and services that will outshine their competition. Conducting research is crucial when attempting to identify specific requirements of both existing and potential customers. Marketers maintain open lines of communication between a company and its customers to ensure the success of any marketing method. Over time, customers become loyal and will buy again-and-again as well as provide free word-of-mouth advertising undoubtedly resulting in

  • Word count: 1515
  • Level: University Degree
  • Subject: Business and Administrative studies
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