The Role Of Pricing In The Marketing Mix

The role of pricing in the marketing mix.

Organisational objectives. For example it might be a new company and for the first two years it wants only to survive.

Costs. Company should consider its investment costs and variable costs. For example the company should find out what type of equipment would be value for money for them. The company also should organise its number of staff and do not employ to many people for example. To large amount of staff will cause increase in price of the product as wages will be overpaid and in order to break-even price will have to be lifted up.

The task requires comparing the price of same flight destination on four different dates. Flight destination that must be considered for this task is London (Luton) to Dublin. The graph of Flight ticket prices regarding dates and dates that must be considered are listed below

Leaving tomorrow-Last minute flights might be very cheap, or customer has to pay full price. In order to get cheap tickets people have to visit various sites that advertising last minute deals, therefore customers have to follow every move and changes on the websites. Disadvantage of the cheap last minute deals is that people do not get any guarantees that they will get a cheap ticket on certain date.However as the Ryanair Company charging £92.07 for departing and £37.99 for return, the total price is £130.01. As the price is high it means that they already had reached the safety margin and they can increase the ticket prices in order to make greater profit. Their target markets at last minute flight are business people and other people who definitely have to fly out next day. Such a people do not look for cheaper prices and willing to pay full price as they must be guaranteed that they will get a ticket.