The marketing mix is a term which is used to describe the full activities that can be used by a business to market its products. This mix is usually referred to as the "4 P's"- product, place, price and promotion. If market research is carried out effectively, a company can plan a promotion for the right product, at the right price, and to get it to their chosen market, in the right place.
The product must be of a quality that not only allows it to be sold in a shop but it also must be seen as some thing that the customers feel they should have. The clothes and shoes sold in my shop will mainly be of an existing brand name so this means that the stock I hold will already have desirability. These existing brands such as "Timberland" will there for have their own advertising which will mean that my business will have advertising for the clothes they sell but not the shop itself.
Pricing strategies can play a large part in the business as through this my company can create desirability about its products or itself. This can also bring new business to the company. For this reason there are many different pricing strategies which all should be taken in to consideration.
- "Market led pricing," this where the company sets its prices in a hope to make a profit but is still low enough to create sufficient demand for the products.
- "One off pricing," is where each product is at a different price this is usually used where job production is in process, not relevant to my company.
- "Cost-plus pricing," is where the price of the products is calculated by working out the cost of the services and then either adding a flat rate amount or a percentage increase.
As the company has set up in an area in which there is computation form a similar shop, the only option is to use market led pricing this is because the market is already established and so a radical new scheme would end in a loss of profit. What also adds to this is the fact that the products already exist in other shops as they are branded clothes made by manufacturers so the pricing has to conform with other shops as the customers would go and purchase my goods at another outlet.