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

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

Extracts from this document...

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.

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

    models of its own based on the typical characteristics of services as discussed in the previous section. Because of these characteristics of the services, service marketing differs from goods marketing. The main difference between marketing goods and services was found to be the difficulty of developing a concrete, tangible service offering.

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

    3.2.3 Primary Research Market research will play a major part in my analysis of the demands of consumers. I am going to use a questionnaire so I will be able to quantify the demand for my product. I decided that I would use a questionnaire for my primary research.

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

    I have outlined P.E.S.T analysis on pages 2 and 3 but have further analysed the effect of these external factors on the development of Nokia's marketing schemes below: Political factors- Legal factors, such as the G3 technology licensing which has cost companies a total of 110 billion euros so far,

  2. creating a marketing proposal

    Secondly we asked about what would encourage you to purchase this new product and the majority of the respondent said that its got good taste, impressed by colour, it has healthy ingredients, offer, low price, good quality fruity smells great, need more fizzy and its sweet.

  1. This coursework entitled "Marketing" is about creating a marketing strategy for a new or ...

    This shows that the car has already been reviewed in a number of car magazines and there has been some advertising. There will need to be more in the future to increase awareness amongst consumers. Question three shows that there are a variety of ways in which people find out about cars.

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

    Comparisons with the competition Comparing this with their closest rival, Marie Claire, who also are successful in what they do, they have nearly reached the top of the league in fact they are second best, just below cosmopolitan. If they have reached this far they must have something that readers

  1. Marketing Strategy - Nintendo Gamecube

    Type of secondary source: Textbook Title: Advanced Business Company: Oxford Authors: Dan Moynihan and Brian Titley This was one of the main textbooks that were used in the completion of this report. The textbook was easy to use, because the information was easy to find as it is laid out in chapters and then sub-chapters.

  2. Design a small scale marketing plan and formal report for a small business.

    I will decide this by looking at factors like cost, space and time to decide which channel to use. 'Marketing is the anticipation and identification of consumer wants and needs in order to meet these needs, and to make a profit.'

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