QUESTION: DISCUSS THE CONTENTION THAT PRICE IS THE MOST IMPORTANT COMPONENT OF THE MARKETING MIX [25]
A Marketing Mix is the combination of product offerings used to reach a target market for the organization (Assael, H., Reed, P. and Patton, M. (1995)). The marketing mix comprises the product, place, promotion and promotion. The marketing mix is also known as the four P’s. The combination of the 4Ps that creates an integrated and consistent offering to potential customers that satisfies their needs and wants. The marketing mix approach is one model of crafting and implementing marketing strategies. It recognizes that marketers have essentially four variables to use when crafting a marketing strategy and writing a marketing plan. They are price, promotion, product and distribution. Assael, H., Reed, P. and Patton, M. (1995)In order for your business to sell its products and services as successfully as possible, you need to look at what products you are selling in detail to ensure they will be attractive and needed, the price to ensure it is not too cheap or too expensive, where you are best distributing your product and finally, how you can create interest and awareness for your products. All these elements need to be targeted at the right people at the right time. In order for your business to tackle this correctly, you need to get the right type of mix.
The marketing mix contains four elements but among the four the price is the most important element of the four. The price determines the amount of revenue to be received. It is one of the major objectives to make profits; as such the price is set so that it covers all the costs associated with the production and distribution of the products (Gentle, Lamb, W., Hair, J., McDaniel, C. (1998)). The price also plays a vital role towards the buying decisions of customers. Provided the products in the industry are of the same quality, customers will seek products that have the cheapest prices. However, there...