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The Marketing Mix. There are a number of pricing policies which a business may adopt.

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Introduction

"Marketing is the process which identifies, anticipates and satisfies customers' requirements profitably". This means, marketing finds out what products or services customers want, either now or in the future, and provide those products or services to them at a price which leaves a profit for the business. Marketing is much more than just selling. Competitive marketing: This is another frequently used term simply describes any market in which there are many businesses competing for customers. Price: There are a number of pricing policies which a business may adopt. The choice of policy depends on: * The type of product being marketed * The competition in that market * The price which people would be willing to pay * The costs of production which must be covered There are 6 methods that a business may use to price there product. These are: * Market-led pricing * Cost-based pricing * Skimming * Penetration pricing * Destruction pricing * Price wars Market-led pricing: This can also be referred to sometimes as "competitive pricing". This method accepts the price which competitors are charging for a product and then prices its product at the same level or slightly lower in order to gain an advantage over the competitors. This would be used in a market that is very competitive. ...read more.

Middle

They use this to attract customers to their supermarkets and not there other competitors. Price wars are not popular with businesses. If pursued long enough, price wars would cut profits seriously and, eventually only the customer benefits by the low prices. A type of pricing that I did not use was market-led pricing. I did not use this type of pricing as I want to enter the market with my product being slightly higher priced than the other similar products in the market. Although I may come back to market-led once my product has been in the market for a while. A type of pricing that I did use was cost-based pricing. The reason I used this product is because this is my first product in my business and I do not have much capital to work with. So I am using this type of pricing to make sure my product is making a profit. I also used skimming for my product. This is a good type of pricing for my product as it is different from the rest of the competition with new technology, which none of the competitors have. So I will have my product being higher priced and try to "skim" the market then once I feel I have done this I will go to market-led pricing. ...read more.

Conclusion

Advertising is an important aspect of promotion and one in which companies invest large sums of money. They do this in order to: * Introduce a new product to the public and encourage sales * Remind the public about an existing product and boost its sales * Target a new segment of the market, thereby increasing their market share provide information about their products or events. The advertising I used was: Internet- This is the fastest growing and most recent form of advertising. Advertisements on the internet have a world-wide audience and can be reached at anytime. They are capable of giving vast amounts of information which can then be saved or printed by the customer. It is possible for the customer to link with the advertisers in order to get further information. This is the reason I used this type of advertising and because from my survey this is the top type of media that my intended audience use. A down side to this advertisement is the internet cannot be accessed by anyone who does not have the necessary equipment. Magazines- I used this type of advertisement as the target market for my product are likely to read golfing magazines. Magazines are bought by most people and their vast range caters for all interests and age groups. Advertising in magazines can be accurately targeted at the appropriate age group and is, therefore very effective. ...read more.

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