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Price as one of the 4 P's.

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Task 12: Price Price is another one of the 4P's which is very important in marketing as most people cannot afford to buy anything no matter what the price is instead people's decision on buying a product is usually if the price right and if they can afford it. For price businesses use different types of strategies to price their products, incorrect pricing leads to costumers not buying their products therefore will loose income and turn bankrupt if a sol trader like I am. Price has always been a very important factor in the marketing mix but it's even more vital in today's competitive environment when businesses have to compete ruthlessly with their competitors. There are many factors that affect the price a business might charge. A business usually will look at its competitor's prices and see what they are charging then they can price their according. ...read more.


The low price will hopefully gain a high market share. Skimming: Is the opposite of penetration instead you price a new, unique product at a high cost to begin with, this is done to make it more desirable for people with high incomes. The early market leader enables the price to be high because there is no competition with that product; once the product becomes known with competitors then the firm can lower the price and get more consumers because of the lower price. This is a great method to use but I will not use this method as I don't think I can compete with the big firms with getting the newest products before them. Competitor pricing: This is when a business looks at its competitors prices and then has an idea of how to charge their products. I will deiffently be using this method when I first start my business as it's a good way of getting a new business started after I see my competitors prices I will charge a little less and may then use penetration pricing. ...read more.


Promotional pricing: This method is when you reduce a price to either attract consumers with the low prices and to get rid of old stock during a sale for room for the new stock or a boost for more profits this will help the business. I will be using this method as it's a great way to increase sales when business is failing also when I will be receiving new stock at the beginning of a new year or at times of needs of a sale. Also it's a good way to encourage new consumers to come into the store e.g. two for the price of one Psychological pricing: This method is very popular and I will be using this it's a clever way of making consumers they are saving money instead its usually only a couple of pennies they do this buy pricing products below a significant whole number e.g. �9.95 rather �10.00. Unlike the other strategies I'm going to use this method all the time as its an easy quick method. ?? ?? ?? ?? Belkize Ismajli ...read more.

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Response to the question

This essay clearly answers the question well, by describing what price is and how it relates to the four Ps. They also take the response to another level by explaining types of pricing strategy. The author also helps to make ...

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Response to the question

This essay clearly answers the question well, by describing what price is and how it relates to the four Ps. They also take the response to another level by explaining types of pricing strategy. The author also helps to make it clear to the author what they are doing: ‘There are seven main strategies I will be looking at and comparing which one is best for my business and when.’ This is a good thing to do in any essay, as it lets the reader know what you are going to do.

Level of analysis

The explanation in this essay is textbook, as in perfect. The author also uses good analysis when he/she explains which one they would use for their business and why. In business studies this is the easiest way of bring analysis into an essay, as you weigh up the pros and cons of each strategy. The level of explanation is improved further by the use of examples for instance the OAPs and Cost-Plus pricing. The essay could have been improved by the use of short conclusion, just to make it clear which strategy they would use.

Quality of writing

The spelling and grammar in this essay was perfect. The layout was good as each method was titled, so as to make it clear what each paragraph was about. This essay has received five stars as it answers the question well, with a good level of analysis.

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Reviewed by islander15 18/03/2012

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