Essay about The Third Important Element Of The Marketing Mix Is Price

701 Words Sep 18th, 2015 3 Pages
Price The third important element of the marketing mix is Price. Price is vital in the purchase decision of customers. The price affects the value that clients perceive on a product when buying. Apple Company has premium brand computers that do not attempt to compete on price. The company reduced prices after initial Apple computers launch. It uses premium pricing strategies and skimming (Armstrong & Kotler, 2005). The pricing strategy rarely fluctuates and the products benefit from the low depreciation. The retail pricing control by Apple is limited with the computers subjected to considerable discounting in the intermediary channel of distribution. The discounting only affects the margin of retailers but not the company. The success of sales Apple computers is due to a simple and uniform pricing strategy which is in the standards of the company (Nijs et al, 2001). Another pricing strategy used by Apple Inc. is the launch of a low-price version of an existing product targeted at price-sensitive consumers. Apple computers have an additional cost advantage because the company does not pay operating systems from another company.
The market skimming strategy involves launching of an improved product changing the relatively high price for a short time. The Apple Company on sales of computers is among the most innovative ideas in the market giving the company the freedom to price (Nijs et al, 2001).. The marketers of the company ensure sometimes that there is a cut in the…

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