BSBMKG502B Establish and Adjust the Marketing Mix. T2-2014

|Student ID | Name | Group |
|S62009 |Yuchuan Zheng(Ares) |marDip114a / marDip214a |

BSBMKG502B LA 5 Learning Activity.

Introduction to Price.

Refer to the lectures slides, textbooks, the Internet and other sources and answer the following questions.

1. Price “P” is an important part of the mix, it is the only component that brings in income. As part of the marketing mix the price “P” must be consistent with the overall marketing strategy and desired positioning.

Explain how price relates to the overall marketing strategy/positioning and the mix for these examples below:

- Apple Computers /products/ Dell computers High price, prestige, bit price skimming, it’s exclusive, creative - Boost Juice commands higher prices than say Bubble cup –why can Boost do this? Boost juice has kind of followed the healthy style trend to make healthy ,green products. - Aldi offers very little customer service (staff on floor) how does this relate to positioning and pricing element of A ldi’s mix?
Low cost, low price. Save money.Marketing change for Aldi. People do not have expect high quality things. Aldi is acceptable "good value". For example we don't argue for a 2 dollars bottle from Aldi.

2. Price is determined at the lower end by costs and at the upper end by what the market is prepared to pay for it (market demand). Between these constraints what other variables impact on price setting?

eg:

Costs • competion • Government regulation • Positioning • Strategy • Suppliers • Promotion •