Marketing Mix

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Marketing Mix P-BSBMX4-MKT-421 Robert Deer January 28, 2006 Abstract A Marketing Mix is a combination of product, packaging, price, channels of distribution, advertising, promotion, and personal selling to get the product in the hands of the customer. Throughout this paper we will be discussing the 4 P 's of Marketing and provide examples of Marketing Mix. (Kyle, Bobette). Marketing Mix The Marketing Mix is based on the fact that price is not the only factor that decides whether customers will buy from you or not. In fact, in some cases people never buy the cheapest! Do you know anyone who has taken 3 quotes and then decided to employ, or buy, from the middle priced quote. The error many new businesses make is to…show more content…
Researching consumers ' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. An organization 's pricing policy will vary according to time and circumstances. Crudely speaking, the value of water in the Lake District will be considerably different from the value of water in the desert. ( Determining a product 's price is a critical marketing tactic. A product 's price has to be high enough to cover the total cost of producing the product yet not too high so that it discourages potential customers from purchasing the product. Also pricing can help position a product. For example, a high priced gourmet food may suggest a quality product. There are numerous methods of determining a product price. The following are two commonly used price determination methods: Mark-Up Percentage Pricing refers to the percent of total cost that is equal to profit. Markup percentage pricing allows the producer or retailer to specify a desired profit percentage they would like to obtain and then price their products accordingly. For example, if a profit equal to 30% of a product 's cost is desired, the total cost of getting the product to market would first need to be determined and then multiplied by 30%. The calculated figure is then added back to the product 's total cost. Thus, the product 's price would be set

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