Explain the Role of Pricing within the Marketing Mix Essay

Explain the procedure of Pricing within the Marketing Mix - Essay ExampleIn order to use the exceed pricing strategy for the harvest-feasts, a good estimate of the quantity of money the consumers are willing to draw on the harvest-feasts is required by the company. It is important to note that most companies do not use equal to(predicate) pricing strategies for the products they generate. Majority of the pricing decisions are cost oriented instead of being value-based as perceived by the consumer (Breidert 2006, p10). Product eminence entails the modification of the product to make it appear more attractive to a particular group of consumers, thus making it different from the contests products. The main purpose of differentiation is to divide the consumers into segments and optimizing the products for the specific needs of the segments. Differentiation requires a sophisticated pricing strategy based on the perceived values of the products (Breidert 2006, p10). In most cases, product pricing is placed within the penetration strategy. incursion strategy determines the factors affecting pricing as noted by Cohen (1983). For instance, a company may unavoidableness to look for short-term objectives using a defined strategy for a particular type of product. The joint objectives mostly used are current product profit maximization or market grapple increase. Both objectives depend on the knowledge of how the market will respond to diverse pricing patterns. scathe is the crucial element for such short-term objectives. This is because it is the mainly flexible component in marketing mix. harm can be adjusted and changed rapidly and short-term adjustments indicates changes in market shares and profits (Breidert 2006, p10). The price of a particular product for most of the companies is based on the consumers perceived value, that is, the company uses value-based pricing. The price of the product is considered with other marketing elements before setting the m arketing program (Colin 1989). In order to develop a value-based pricing strategy, the company is required to estimate the present perceived value of its product(s). In such a case, the company attempts to measure the products demand and the demand is dependent on the historical sales data and the competitors prices. External factors such as holiday and weekends, and advertising also affect the demand for the products. Lastly, the entre of a new product into the market by a company requires the adoption of different strategies. The put of a single product requires a pricing strategy such as penetration or skimming strategy. Adoption of a skimming strategy entails charging the consumer for a short period of time a relatively high price for the launched product. Penetration strategy entails setting a lower price for the product to gain a large market share (Breidert 2006, p11). 2. Visit the Easyjet London (Luton) to Madrid for various periods. show flights assumed with a duration o f one week a. going tomorrow 21-28 Jan 21 January, 2012 - Outbound - 73.99 21 January, 2012 - run - 46.99 Total = 120.98 b. Leaving in 1 weeks time 28 January, 2012 - Outbound - 73.99 4 February, 2012 - Return - 46.99 Total = 120.98 c. Leaving in 1 months time 21 February, 2012 -Outbound - 25.99 28 February, 2012 Return - 10.99 Total = 36.98 d. Leaving in 3 months time. April 21, 2012 Outbound - 35.99 April 28, 2012 Return 89.99 Total = 125.98 Easyjet generally offers competitive prices to customers on the same routes and