Pricing refers to determining the value that customers are willing to pay for a product or service. Effective pricing strategies balance profitability with customer demand.
Example:
Amazon uses dynamic pricing algorithms that adjust product prices in real-time based on:
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Competitor prices
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Product demand
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Customer purchasing patterns
Amazon’s competitive pricing paytm database model keeps its platform attractive to price-sensitive consumers.
Why It’s Important:
Pricing affects both sales volume and profitability. Setting prices too high may reduce demand, while pricing too low can erode profits and devalue a product.
4. Distribution: Delivering the Product to Customers
Definition:
Distribution (also known no unsolicited scraping: as place in the marketing mix) involves selecting the most effective channels to deliver products to customers efficiently.
Example:
Coca-Cola has an extensive global distribution network that ensures its products are available in supermarkets, convenience stores, vending machines, and restaurants. Their strategic partnerships with bottling companies allow them to serve millions of locations worldwide.
Why It’s Important:
Effective distribution ensures mobile list that the product is available when and where the customer wants it. Poor distribution can lead to lost sales and customer dissatisfaction.