Question

1. Choose one of the 4 p’s and explain how this element of the marketing mix effects the positions of a particular product or service? Use a real life example?

Answer 1

The chosen P of the marketing mix: Price

Price is one of the most crucial factors which affects the sales of a product. Often, consumers compare prices and assess if their needs justify the price the seller is asking. Therefore, any marketer needs to understand the needs of his target market, evaluate the features of the products to determine the final price for which the product will be sold.

While some consumers may keep their prices low to gain economies of scale and to cover more markets, some may keep their prices high to cater to the creme de la creme or the high-class consumers of the market.

Examples of low-priced products as Tide, Ariel, and Persil. All of these products are similarly priced to cover more market.

Cars like Mercedes and Lamborghini have a high price tag and cater to the rich in the society. This helps them in maintaining the tag of being a luxurious product which sets them apart from the rest of the car companies and helps in creating a brand for themselves.