Marketing Mix Research Paper Example | Topics and Well Written Essays - 1250 words

Marketing Mix - Research Paper Example the core product, the augmented product and the tertiary product (Ferrell, 2010). Before a company enters the process of creating a product, it has to answer some questions like; what type of product do they want to sell, what would be the quality of their product and also decide whether they will label their product as only new or sub brand. Based on these questions, some decisions have to be made. These product decisions affect all other marketing mix variables e.g. launching a machine of the highest quality influence the price and marketing strategy to be adopted to promote it. Being the determinant of any other marketing variable, a product features can be altered to make it fit in the marketing mix (Ferrell, 2010). This variable is largely dependent on other marketing variables therefore calls for regular review. The key factors that affect the price of products are advertising expenses, marketing expenses, distribution cost of the product, cost of creating a product and any damage fluctuation in the market (Dogra, 2007). These factors varies independently thus causing price of a product to bear the brunt of changes for a certain period of time. The change in these other variables calls for reduction or increase in the price of the product accordingly. Other external factors also hugely affect the pricing strategy to be adopted by a company. Competition vastly determines the pricing strategy to be adopted by a company. Especially if, the two companies’ products are substitutes, then a company has to set prices that are appropriate to the so as to avoid losing the market advantage to the competitors. Some companies choose to use pricing as a tool to position their product. Others use pricing as a tool to support sales promotions. They give their esteemed customers sales promotions inform of trade discount (Dogra, 2007). This usually refers to the distribution channels a company uses to make its product to the market. A consumer based