- Chapter
Chapter 12: Marketing Mix Strategy
pp. 560-616- Add bookmark
- Cite
- Share
Summary
This second chapter on business strategy examines marketing mix decisions. In particular, it focuses on more complex aspects of pricing not covered in the context of Chapter 9 on market structure and pricing. This starts with a discussion of price discrimination, and its various degrees and types. It then moves on to examine multi-product pricing, transfer pricing and dynamic aspects of pricing over the product life cycle (PLC). A detailed discussion of psychological pricing is included, and this covers behavioural aspects not normally considered within the scope of managerial economics, but highly prominent in real-life applications. Advertising decisions are also discussed in the context of the marketing mix, examining the different strategy variables in terms of content and choice of media. Recent trends in strategy related to digital and social media are discussed. There is also a discussion on the controversial topic of the effects of advertising on welfare. Finally, there is an advanced section at the end of the chapter related to optimising the marketing mix, which is mathematical in nature and involves some counterintuitive conclusions.
Keywords
- Marketing mix
- price discrimination
- multi-product pricing
- transfer pricing
- product life cycle (PLC)
- psychological pricing
- reference prices
- two-part tariffs
- advertising
- digital media
About the book
- Chapter DOI https://doi.org/10.1017/9781108989367.013
- Book DOI https://doi.org/10.1017/9781108989367
- Subjects Business and Management,Economics,Microeconomics,Strategic Management
- Format: Hardback
- Publication date: 07 April 2022
- ISBN: 9781108839143
- Format: Paperback
- Publication date: 07 April 2022
- ISBN: 9781108984508
- Format: Digital
- Publication date: 09 February 2022
- ISBN: 9781108989367
- Find out more details about this book
Access options
Review the options below to login to check your access.
Personal login
Log in with your Cambridge Higher Education account to check access.
Purchase options
If you believe you should have access to this content, please contact your institutional librarian or consult our FAQ page for further information about accessing our content.