The marketing mix is comprised of product, price, promotion, and place. All four of these components work together and my assigned piece is price. Price refers to assigning a value to a product. Price can be used to attract customers. This can be seen in any grocery flyer with boy one get one free offers or a percentage off. Consumers love sales and they feel they are getting a greater value for a lesser amount because they are getting the item at a discounted amount. Price is determined by many factors. Price is determined by the value of a product or the value the marketer is trying to convey. Consider two similar ear buds; one set sold for $5.99 and the other for $19.99. The automatic assumption is that the higher priced ear buds will give a higher quality sound. However, the $5.99 ear buds may be just as good but the company is trying to sell their product to a lower income marketing group and can afford to sell them at that price point.
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