If the product is innovative like Apple then the pricing will be very high On

If the product is innovative like apple then the

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-If the product is innovative (like Apple) then the pricing will be very high. On the other hand if the product is a “me too” type of product (like Xolo, Micromax), then the price will be lesser. Whereas cheaper alternative brands (Chine imported smartphones) will have the lowest pricing of the sector. Thus, the type of product and its cost also affects the pricing decision for the product.-Promotions directly contribute to the positioning of the brand in the consumers mind. Thus, some companies like Adidas and Reebok spend a lot on promotions and hence have a higher positioning in the minds of the customer and therefore higher prices as well. On the other hand, companies like Bata put lesser investment in promotions and more investment in manufacturing larger quantities of products so that they can reach themasses. Thus they have cheaper pricing. Thus, promotions and product combine can also affect the marketing mix price decisions.-Place – Imagine a company like Amul which delivers products at cost plus pricing to all corners of the country. Similarly all FMCG companies have to following breaking the bulk to transport products. The major cost for such companies is transportation. A drop in 1 rupee for diesel affects the pricing of the products because then the company saves lacs.On the other hand, a hike by one rupee will lessen the margins to the company. Thus, as transportation and placement of products is a major cost for the company, it affects pricing decisions.Reference: © JRTO Works 2019 SELC Career College Australia RTO: 91721 SELC-BSBMKG501-502-SRT-V2019.1.25
This document is Marketing Mix Report Template It is part of the supporting assessment resources for Assessment Task 3 of BSBMKG501/502 Cluster.4. Determination of the final marketing mixExternal environmental factors that may impact on the selected marketing mix, for example, economic conditions, the political or legal environment?-The Competitive EnvironmentCompetitors are those who sell the goods and services of the same and similar description, in the same market. Apart from competition on price, there are like product differentiation. Therefore, it is necessary to build an efficient system of marketing. This will bring confidence and better results.Effect of identified environmental factors on the marketing mix? -Macro Environment: oDemographic Forces: Here, the marketer monitor the population because people forms markets. Marketers are keenly interested in the size and growth rate of population in different cities, regions, and nations;age distribution and ethnic mix; educational levels; households patterns; and regional characteristics and movements.oEconomic Factors:The economic environment consists of macro-level factors related to means of production and distribution that have an impact on the business of an organization.

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