The Marketing Mix is the marketing approach to the market and contains four main components: Product, Product Distribution, Price and Promotion. Every company in every market has its own approach to specific market. As there are so many variables in every business, there are many different approaches to the marketing mix. There are so many consumers with different needs, grouped in segments. Also, there are many competitors in every market, with their own approach to the marketing mix.

The promotion (Promotional Mix) is one instruments of marketing that has the purpose to inform potential customers and consumers about product or service and to contribute to sales increase on the long term. The goal of promotion is to inform the public, increase the demand, differentiate the product, increase the product value and to stabilize the sales. Usually the promotion is targeting more than one goal within particular campaign.

There are many companies that offer similar product at similar conditions. In this situation every company need additional wind in a back that will improve the marketing position and assure a certain competitive advantage. This is enabled through Marketing Promotions, as another element of Marketing Mix.

The Price is the one of components of Marketing Mix, along with Promotional Mix, Product Distribution and Product. The price is usually defined as financially expressed value of the product or service at the market. Price levels are setting the public opinion about a specific supplier. For modern shopper the price is not only the expression of money outflow, but also represent a certain value, benefit or satisfaction that certain product or service is supposed to provide.

The price can be a link or barrier at same time. The consumer needs to pay for his product, before the transaction is closed. So if the product is affordable, the consumer will buy it. Consumer usually wants the price to be as lower as possible. At same time, the Producer, or Trade, would like to have the price as higher as possible. This is the main principle of Price perception from opposite angles.

This principle is quite general and is have many exceptions. For example, the Producer or Trade might want to decrease price, in order to be more competitive in the market, or to incentives shoppers for more massive buying. This price policy can bring additional sales to the Company that can cover the price decrease and bring additional profit.

On the other hand, consumers sometimes prefer the expensive product. Buying the expensive product for some consumers is confirmation of their social status. Simply, exclusivity has it price and some consumers are ready to pay the extra price, in order to make them different from the others.

Also, the consumers could suspect in some cases that too low price is indication of low quality or some other problem. Therefore somebody may choose more expensive product, which is supposedly giving a higher quality.

It is obvious that price and promotion contribute strongly to the marketing mix and the position in the market.

Product Price Mix and Promotion Mix are important aspects of Marketing Mix. More on biz-development.com

http://www.biz-development.com/Marketing/5.6.Marketing-Mix-Price.htm and http://www.biz-development.com/Marketing/5.7.Marketing-Mix-Promotion.htm are important elements of http://www.biz-development.com/Marketing/5.1.MarketingMix.htm

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Category: Business Management
Keywords: promotion, price, marketing mix