• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Price as one of the 4 P's.

Extracts from this document...

Introduction

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.

Middle

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.

Conclusion

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Here's what a star student thought of this essay

5 star(s)

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 ...

Read full review

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.


Did you find this review helpful? Join our team of reviewers and help other students learn

Reviewed by islander15 18/03/2012

Read less
Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. Marked by a teacher

    NVQ level 2 unit 2 Business Administration. Worksheet on Principles of providing administrative services

    5 star(s)

    between business and customer and behave in a clear and accurate manner so the customer knows exactly what is what and the facts and figures are all easy to understand. 4. How do customers demonstrate their own needs and expectations?

  2. Marked by a teacher

    Do you think it is a good idea for companies to use corporate social ...

    3 star(s)

    * Education - for children and so that they can do specific jobs that needs a specific education. * HIV/Aids - For breadwinners that dies to provide their family and people they were responsible for. * Employee volunteerism - People will obtain skills that will enable them to become either employed or self employed.

  1. Business Studies Edexcel Coursework

    Transport Media Transport media is what we see displayed on the side/back/interior of buses, coaches, trams and trains. To exhibit your business' logo or advert on the sides of buses would be rather costly; it is only well established nation-wide companies which choose to do this.

  2. Case Facts / Summary - Mr. Ingram and Mr Christmas were partners in a ...

    However as the debt involved in Tower Cabinets Ltd v Ingram [1949]2 KB 397 was incurred post-retirement any relevance here is questionable. . The judgement The King's Bench Division held that Ingram was not liable under section 14 of the Partnership Act because he had never knowingly suffered / held

  1. Tesco Research

    Quantitative research are secondary data, this kind of data has to do with numbers and figure like accounts, but not letter or words this kind of data is that has already been gathered and this could be the number of people who are to turn up for the interview, staff

  2. Case Study of the "Life is Good" clothing company.

    High employee turnover. 6. Consistently poor quality 7. Loss of market share. 8. Vulnerability to competitors. 9. Poor sales results. 10. Decreasing profits from year to year. 11. Consistently poor decisions. c. Motivational issue. No organization, be it formal or casual, will get far if its workers are not motivated.

  1. Business Studies- Unit 1- Stakeholders

    to a business, and employees will not like profitability being at a hindrance due to pleasing these customers. The next external stakeholder that I will explore is the local community. The community of the surrounding area of Coca Cola Wakefield are interested in job offers, involvement in new ideas which

  2. Analyse the relationship between job roles, functions and an organisations structure, using appropriate illustrative ...

    Stebbings has fewer functional areas than Tesco because it is a small company which operates locally only whereas Tesco globalised company and operates worldwide therefore needs more functional areas within their company. The company is spilt into product areas which makes it easier for the employees to see where there are also very flexible.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work