Name the element of marketing mix which affects the revenue and profits of a firm. Explain any four factors which help in determining this element.
Name the element of marketing mix which affects the revenue and profits of a firm. Explain any four factors which help in determining this element.
The element of marketing mix which affects the revenue and profits of a firm and the factors affecting price mix are-internal factors and external factors.
Internal factors are :
(i) Organisational objectives that affect operations of the business. These operations are directly related to customers' needs which requires alignment and allocation of suitable resources.
(ii) Costs of factors of production and distribution depend upon the nature of the industry and the business practices.
External factors are :
(i) Demand for the product from selected markets.
(ii) Competition and its extent based on the number of buyers and sellers also influence pricing.
(iii) Changes in tastes and preferences or purchasing behaviour causing psychological pricing.
The element of marketing mix which affects the revenue and profits of a firm and the factors affecting price mix are-internal factors and external factors.
Internal factors are :
(i) Organisational objectives that affect operations of the business. These operations are directly related to customers' needs which requires alignment and allocation of suitable resources.
(ii) Costs of factors of production and distribution depend upon the nature of the industry and the business practices.
External factors are :
(i) Demand for the product from selected markets.
(ii) Competition and its extent based on the number of buyers and sellers also influence pricing.
(iii) Changes in tastes and preferences or purchasing behaviour causing psychological pricing.
