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

The Marketing mix Price

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Marketing and Markets section.

Found what you're looking for?

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

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 Marketing and Markets essays

  1. Marketing mix

    a hotel room. Payment is for the use of or hire of items. With the sale of the tangible good, the buyer has full ownership of the product. Goods are produced, sold and consumed whereas services are sold and then produced and consumed.

  2. Produce a marketing strategy for a new or existing product

    This means Cosmopolitan can only cater for specific group with a particular likes and dislikes. This is why I am talking in point of view of the contents and not the whole readership. Magazines such as Company and marie claire might have the same readers with the same likes and

  1. creating a marketing proposal

    * Research was a questionnaire that is open and quantitative was closed question. We have under taken the primary research. Our first research was preliminary market research: Sainsbury's and it's a table (PRIMARY: MARKET RESEARCH) which showing seven different products which include: company name, brand, name, quantity, packaging, price, slogan, logo, colouring and design.

  2. I have been asked to produce a marketing strategy for an existing or new ...

    Sampling A sample survey is a representative of something. For example it should represent the whole population. The purpose of sampling is to find out and make estimates about the population from the sample. Test Marketing Test marketing is usually used when companies do not have sufficient time or money to do market research.

  1. For this project I have been instructed to come up with a marketing strategy ...

    phones and advanced picture messaging would attract new consumers to purchase phones under the Nokia brand name. 2. Using innovation to re-invent their products, change and develop within the market to offer something none of the competitors have. Also the fact that phone call charges are being forced to fall

  2. Marketing Strategy - the marketing mix - promotion - product - price - place

    This would be a very effective tactic for Pepsi, as it sells to many large retailers, and cash and carry outlets. The disadvantages however it that it is very costly. If it costs �30p to produce a can of Pepsi, and we sell it at �0.25 it means we loose 5p on every can produced.

  1. Plannng and research. I would like to open a African restaurant, food from all ...

    free gift basket or other incentives that are roughly equal to one of the items purchased. Birthday program - Research shows that 40 percent of all Ghanaian eat out on their birthday. This presents an opportunity for establishments with solid birthday programs. So restaurants should take more advantage of this.

  2. Marketing Mix

    This would obviously save your company a lot of money setting up a variety of retails outlets to cover areas regionally or nationally. However, the administration behind running a system like this would be considerable. Firstly you would have to have a sales team to consult with the retailers on new products, price and promotion.

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