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Name the element of Marketing Mix which is considered as the most crucial element for determining organization’s profit and survival. All other elements of the marketing mix are dependent on this very element. Also, discuss the major strategies adopted by different marketers in context of identified element of marketing mix. |
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Answer» The element of Marketing Mix talked about in the lines is PRICING. Different pricing strategies: 1. Market Penetration Pricing: The objective of penetration price strategy is to gain a foothold in a highly competitive market. The firm prices its product lower than the others in competition to achieve an early breakeven point and to maximize profits in a shorter time span or seek profits from a niche. 2. Market Skimming Pricing: Most commonly used strategy and refers to a firm’s desire to skim the market by selling at a premium price. 3. Differential Pricing: It involves in a firm differentiate its price across different market segments. 4. Geographic Pricing: It seeks to exploit economies of scale by pricing the product below the competitor’s in one market and adopting a penetration strategy in another. 5. Product Line: These are a set of strategies which a multi-product forms usually adopt. |
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