24 Pages

Unit 5 The marketing mix: price

This unit covers the second key element of the marketing mix, and the only one that generates

revenue for the company.

In a profit-making organization, and perhaps surprisingly in many not-for-profit ones too, pricing

decisions are central to the effectiveness of a company. For obvious reasons prices have a

major impact on levels of profits. However, pricing is more than simply an accountancy exercise –

indeed, it is a vital element of marketing plans. For example, price helps to position a product/

service in a market and ultimately in the mind of the customer.