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Reading Practice Text C marketing mix is the goods or service. Creating a product strategy involves choosing a brand name, packaging, color, a warranty, accessories, and a service program. Marketers view products in a much larger context than you might imagine. They include not only the item itself but also the brand name and the company image. Brand names create extra value for everything from cosmetics to bath towels. That is, products with those names sell at higher prices than identical products without the names. We buy things not only for what they do but also for what they mean. Reading Practice Text C Pricing strategy Pricing strategy is based on demand for the product and the cost of producing it. Some special consideration can also influence the price. Sometimes, for instance, a special introductory price is used to get people to try a new product. Some firms enter the market with low prices and keep them low. Others enter a market with very high prices and then lower them over time, such as producers of ③high-definition televisions and personal computers. Price setting must consider the kind of competition in ④the target market and the cost of the whole marketing mix. A manager must also try to estimate customer reaction to possible prices. Besides this, the manger must know current practices as to ⑤markups, Reading Practice Text C discounts, and other terms of sale. And if customers won’t accept the price, all of the planning effort is wasted. Distribution strategy Distribution is the means by which a product flows from the producer to the consumer. One aspect of distribution strategy is deciding how many stores and which specific wholesalers and retailers will handle the product in a geographic area. Cosmetics, for instance, are distributed in many different ways. Some have a s
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