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Busniess Studies Marketing Strategy - College Essays

Busniess Studies Marketing Strategy

The marketing mix is a recipe for effective marketing. Using the marketing mix when planning the marketing for a product allows for a consistent approach.

Getting a good balance of the 4 Ps will mean an effective marketing campaign.

The main pricing strategies are

* Competitive pricing
* Cost plus pricing
* Penetration Pricing
* Price skimming
* Destroyer pricing
* Price discrimination

COST PLUS PRICING

This is the simplest pricing strategy and is aimed at ensuring the business covers its costs and makes an acceptable profit. The total costs of producing one unit of the product are calculated to which is added the required profit margin. This gives the selling ...

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of the market, but may yield a low profit or even a loss in the short run. The price is usually raised later.

PRICE SKIMMING

Where a new product is likely to generate a high volume of initial sales (because it is a new product) a high price may be charged in order to maximise profits. The price will be reduced when the initial high demand has subsided.

Eg. Apple, Xbox, Playstation

DESTROYER PRICING

A destroyer pricing strategy involves setting a price so low that competitors cannot match it. In this way they will lose customers and be driven out of the market. The price can then be raised without threat of competition.

Eg. Woolworths, ALDI,

PRICE DISCRIMINATION

Sometimes it is possible to discriminate between types of customer for the same product, perhaps based on usage or quality. Car insurance companies, for example, commonly discriminate on the basis of age and perceived risk.

PRODUCT

* A product is anything that is capable of satisfying customer ...

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PAPER DETAILS

Added: 6/9/2014 12:31:41 AM
Submitted By: johnmight
Category: Business
Type: Free Paper
Words: 456
Pages: 2

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