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The Marketing mix Price

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Introduction

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. ...read more.

Middle

Above the line - Most advertising would be said to be as above-the-line promotion. The main media choices include: television, radio, cinema, national newspaper, posters, magazines, internet, etc. Below the line - Any promotion not using traditional media is classified as below-the-line. The main types of below the line are: sales promotions, direct mail and door to door, personal selling, sponsorship, etc. An example for below-the-line is Arsenal are sponsored by Fly Emirates, this is a form of below the line promotion. This form is very expensive. Advantages and Disadvantages of above the line marketing Advantages of above the line * Advertising to a wider range of people and the shop could get more customers * Increases the companies sales which cold boosts the shops profit Disadvantages of above the line * Is very expensive * Can be very time consuming * Continuous monitoring of product Advantages and Disadvantages of below the line marketing Advantages of below the line * Can be cheaper * Advertising to a wider variety of people * Increases number of sales Disadvantages of below the line * Can be very expensive * Easy to lose money. ...read more.

Conclusion

Place When you are opening a business the main feature that you need to think about is where you are going to locate the business. If you are going to put a shop in a sparsely populated area, where there is little of your target market, in this case Jewish people, thou are not going to make much, if any, profit. Whereas, if you place your business in a dense area e.g. Barkingside, where there is much of your target market you are going to make money and a lot of people will come to your shop. From my survey I know that most people live in Barkingside and that Barkingside is the place that most people will want a kosher shop to be located. By telling Abraham the results from my survey about locating in Barkingside, this should help Abraham to achieve his objectives. Product The products that you sell in a shop are very important; you need to make sure that the prices are reasonable and in a kosher shop the food must abide by the Jewish laws. If you have stock with products that are unknown, then you will have problems selling them as people will not want to buy products they don't know. I'm sure my 5 main suggestions will help Abraham make the right decisions in what to stock ...read more.

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