Marketing Mix: Price and Pricing Strategies

This presentation discusses the importance of price in the marketing mix and explores different pricing strategies used by organizations. It focuses on how Marks & Spencer uses pricing strategies to gain a competitive edge in the market.

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The Marketing Mix of the organizations refers
to the elements which are required to be considered
by them for their marketing activities. In this
discussion, focus will be made on Price which is
one of the elements of the marketing mix. Analysis
of different types of pricing strategies will be done.
Marketing Mix
Introduction Market SizePricing Strategies
MAIN BODY
Price refers to the amount of money which is
required to be paid for purchasing a particular
product or for availing a service. It is an
important element in the context of the
marketing mix of an organization. The
companies are required to take it into
consideration so that they are able to set a price
which can be helpful for them to earn higher-
level of profits in the future time period.
Pricing Strategies-
Pricing Strategies are different types of
models which are used by the companies so that
they are able to identify the right price which can
be chosen by them to earn higher-level of profits.
The managers of Marks & Spencer make the use
of these pricing strategies so that they can
acquire a strategic edge over the competitors in
the market. The different pricing strategies are as
follows-
Dynamic Pricing Strategy- In this pricing
strategy, there is a high-level of flexibility which
is desired. This strategy can be used when the
dynamic requirements in the market change
quickly. The industry in which Marks & Spencer
operates i.e. the Retail Industry has high-level of
fluctuations which are witnessed in the demand
of different products and services. Therefore if
the company is able to make the use of this
strategy then it will easily identify the right
approach through which it can earn profits.
Freemium Pricing Strategy- The use of
this pricing strategy is made when the basic
product is offered for free and for the additional
features the charges are made. In the context of
Marks & Spencer, the use of this strategy can be
made if its offers some of its the features of its
different products for free and hope that the
customers will consider the premium features of
its products by making the desired payment for
them.
High-Low Pricing Strategy- When this pricing strategy
is used, the products are offered at a high price initially
and then subsequently the prices are lowered to suit the
needs and requirements of the customers. In the context
of Marks & Spencer, the use of this pricing strategy can
be made by ensuring that higher prices are set and
subsequently the discounts are offered to raise demand.
Penetrative Pricing Strategy- This pricing strategy
is used in order to penetrate the market effectively. The
companies can make its use so that they are able to
identify the right way to penetrate the market with the
products and services. In Marks & Spencer, the
requirement is to ensure that the company is able to
penetrate the market by lowering its prices of its new
products so that the profits can be earned later on when
the demand increases.
Justification- Marks & Spencer is required to make the
use of Competition-Based Pricing Strategy in which the
analysis of the prices used by the competitors is done and
thus the right price is selected accordingly for earning
higher-level of profits in the future time period.
CONCLUSION
From the above discussion, it can be concluded that
there are various types of pricing strategies which can be
used by the organizations. The most appropriate pricing
strategy must be selected which can help the companies
to be able to achieve their goals and objectives and