Wednesday, August 28, 2013

Marketing Mix: Price

Price is the sum of all the values that customers give up in order to gain the benefits of having or using a product or service (Armstrong, Gary,  Philip Kotler. Marketing: An Introduction, 10th Edition). We plan to set the price of spicy safari chips at $3.49 for a 3 oz. bag. In providing that amount, a customer can feel comfortable eating it by himself/herself or sharing it with a friend. Since spicy safari chips will be sold in the typical bar atmosphere, we wanted to price it at a level that would be slightly lower than the cost of whatever beer is offered on tap. Also these bars may offer other snack options on their menu and we would like to be in direct price range of that. Price is also one of the most flexible marketing mix elements. Unlike product features and channel commitments, prices can be changed quickly (Armstrong, Gary, Philip Kotler. Marketing: An Introduction, 10th Edition). After spicy safari chips trial run in nearby bars and before national distribution, we would also as the bar owners to give us feedback in how it faired against their current snack selections.

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