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Assignment on Pricing in Marketing Mix

   

Added on  2020-10-22

1 Pages874 Words470 Views
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Pricing is one of the essential component of marketing mixwhich refer to the amount at which customer gets the productand fulfil their DESIRE.The company has the authority todetermine right price of the product based on competitionrate, customer base, market share of company, demand ofproduct ans so on. In context to Tesco company has adoptedcost leadership price strategy, within such strategy companytend to expand the market share of product by reducing theprice and well as per unit profit margin of company.Additionally, Tesco has utilised the advantage of itseconomies of scale in order to expand its market reach.MAIN BODYMarketing Mix emphasize on placing right product at rightplace with desirable price and promotional technique.Marketer basically focuses to prepare actions or tactics forthese four P's of marketing before launching an innovativeproduct in the market to gain competitive advantage over itsrivalries.Such promotional program does not incur much expense ofcompany but receives huge applause from the society. Oncontrary there are very negative circumstances of choosingwrong price strategy such as company can loose theirexisting as well potential customer, gives the advantage totheir competitor to capture huge market, decrease in loyaltyand trust of customer for respective brand. Further, in orderto reduce the dissonance of customer Tesco has maintainedits low price even it launches new category say new foodbrand. Therefore, company keeps on restructuring itsoffering to bring most suitable offers for the customer.CONCLUSION From the above report it has been concluded that marketingmix assist the company to gain the insights about marketingcondition as well as preferences of customer. It makes thetask easier for company by placing right product at optimumprice so that the offering can appeal the interest of customer.INTRODUCTIONMARKETING MIXThus, company has received huge advantage of setting stable as well aslow price as it has enhance the huge customer base of loyal customer.Along with that company has strengthening its distribution channel,formed good supplier company relationship so that customer does notfind shortage of inventory. Moreover, company run attention seekingprogramme such as Brand Guarantee programme. Within thisprogramme if customer gets any branded product at other place thenTesco matches lowest price.Hence, through these types of programmecompany translate the message to the customer that they serve bestquality product at a reasonable price.
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