The marketing mix is a fundamental aspect of marketing that includes the 4Ps: product, price, place, and promotion. It is used by businesses to decide how to market products based on customer needs. Price is an important element that impacts revenue and market share. Common pricing strategies include cost plus, penetration pricing, price skimming, competitive pricing, promotional pricing, and loss leaders. The appropriate strategy depends on factors like market entry, increasing sales, and covering costs.

1. Marketing Mix
Price

2. Objectives




Define the marketing mix.
Explain pricing strategies in a given business.
Apply different pricing strategies to a range of
products.
Analyse the appropriateness of different
pricing strategies in a given business.

3. What are the 4Ps of the
Marketing Mix?

4. Components of the Marketing
Mix
Product
Place
Marketing Mix
Price
Promotion

5. How is the Marketing Mix
Used?




Understand the needs and wants of
customers (Kolter 2002).
Used by businesses to decide how and
where to market a product.
A small business may just hand out leaflets.
A large business will look at each of the 8Ps
in detail.

6. The 4ps must be balanced
Marketing
Strategy
Integrated
Marketing Mix
Product
Place
Price
Promotion

7. Different Marketing Mix for
Different Situations
Type of Purchasing
 Are goods:
Most Important element
of mix
regular purchases
 Impulse purchases
Regular Purchases
Product, promotion and
 Emergency purchases
price

chocolate brands focus on place and
Impulse Purchases
Place, and promotion
promotion.
(including packaging)

Emergency Purchases
Place and product

8. Influences on the Marketing
Mix

Finance

Technology

Research

Consumer

9. Where does the Marketing Mix
fit into Planning?
Analyse the market
Develop Strategies
Develop Marketing Mix

10. Write down the 4Ps on your
post-it note

11. Quiz
The biggest influence on the marketing mix is?
A.
B.
C.
Finance
Consumers
Technology
Which is a member of the 4 Ps ?
A.
B.
C.
People
Place
Public Relations
The marketing mix is the fundamental aspect of
marketing?
True
False

12. Quiz
If I was a small business, which promotion method would I
be likely to use?
A.
B.
C.
National advertising between mainstream TV programs
Online through Facebook
National newspaper
Marketing excites me.
True
False

13. Objectives




Define the marketing mix.
Explain pricing strategies in a given business.
Apply different pricing strategies to a range of
products.
Analyse the appropriateness of different
pricing strategies in a given business.

14. Importance of Price –
Business Revenue

Revenue = price x units sold

If the price isn't right businesses could:

Lose customers

Lose revenue

15. Reason for pricing strategies




To break into a new market.
To try and increase market share.
Increase profit.
To make sure all costs are covered.

16. Pricing Strategies

Types of Pricing Strategy:
 Cost plus Pricing.
 Penetration Pricing.
 Price Skimming.
 Competitive Pricing.
 Promotional Pricing.
 Loss Leader.

17. Cost Plus Pricing





A company will look at how much a product
will cost to produce.
Then add a percentage mark-up profit
(money added on top to make a profit).
Easy to apply.
Always covers costs.
If competitor is selling at a cheaper price
could lose sales.

18. Penetration Pricing



This would possibly be used when trying to
enter a new market.
Price is set lower than your competitors.
Customers will try your product and become
regular customers.

19. Price Skimming



Product is usually a new one and therefore
can be sold on the market at a higher price.
Establish the product being of high quality.
May put off some customers who can’t afford
it.

20. Competitive Pricing




Pricing in line with your competitor’s price or
just below.
Sales are likely to be high because your price
is not over or under priced.
Requires research which costs money.
Can end in a pricing war with competitors.

21. Promotional Pricing




Promotional pricing is pricing the product
low for a set amount of time.
Useful for getting rid of unwanted stock.
Renew interest in the business if sales are
falling.
However, can affect business revenues.

22. Loss Leader




Aim to capture a large share of the market by
charging a low price (below cost).
Short-term the firm will make a loss.
However, it will capture a large market share.
Longer term will raise the selling price of the
product and make profits.

23. Missing line task






Market Penetration - Charging a low price to
gain market share.
Price skimming - Pricing high to maximise profit
margins.
Cost plus - Adding a % of profit onto direct costs.
Loss Leader - Selling a product at below its cost.
Competitive - Charge above or below
competitors
Promotional - Low price for a small period of
time.

24. The price is right

Eight scenarios, which pricing strategy would
you use and why?

25. Objectives




Define the marketing mix.
Explain pricing strategies in a given business.
Apply different pricing strategies to a range of
products.
Analyse the appropriateness of different
pricing strategies in a given business.

26. Case study - Homework


Read case on ASDA and £3 jeans.
Answer questions, 1-3.
This is due in for Thurday

27. Objectives




Define the marketing mix.
Explain pricing strategies in a given business.
Apply different pricing strategies to a range of
products.
Analyse the appropriateness of different
pricing strategies in a given business.