Marketing Mix Price, Supply and Demand

INTRODUCTION Nowadays, the demand of air travelling is increasing quickly leads to the appearance of many low cost carriers which focus on popular class. This had made huge changes in the original service and pricing strategy. Easyjet is one of the most successful low-fare airlines in the World, which has a noticeable measure of pricing it product. “Price” is one of the “four Ps” in marketing mix but its role is different from the other Ps: “promotion”, “product” and “place”. By studying about the comparison between a low cost carrier and a normal one, which head to different priorities, this assignment will help us to understand how the prices of low cost airlines could be opposed with normal ones, so they can orient their goal to achieve in the best way. Besides, we can see the actual level of importance of “price” in business, how it flexibly applies theory into real complex business environment.

I. The role of pricing within the marketing mix
Price is one of four Ps of marketing mix which is the process of determining the value of a company’s received things in a product exchange. Pricing is the work of calculating the price for a product, which can affect directly business performance, so price is considered to be very important.
This part of the assignment will point out the differences between price and other marketing mix factor to help us to understand the unique role of it. Firstly, price is flexible while decision and performing processes related to the rest of 4 Ps including product, place and promotion take a long period of time to make changes or carry out. Marketers can quickly increase or decrease the price of a product in order to satisfy consumers’ demand or respond competitors’ action. This flexible characteristic of pricing helps organization adapt effectively to market changes. Price is the most adjustable element of all marketing decision and depend on marketers’ decision, can lead to