Before launching its new juicer, Mixo Ltd. decides what it wants to achieve through the amount it charges, such as a larger market share. It then studies the factors that affect this amount and fixes it. These decisions relate to which element of the marketing mix?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Price
Option (1) Product — Incorrect. Product decisions are about the features, quality, packaging, labelling and branding of the juicer.
Option (2) Price — Correct. Price is the amount of money customers pay to obtain the product. Marketers decide the objectives of price setting, analyse the factors determining the price, and then fix the price. Mixo Ltd. takes all three steps.
Option (3) Place — Incorrect. Place decisions make the product available to buyers: dealers, inventory, warehousing and transport.
Option (4) Promotion — Incorrect. Promotion decisions are about communicating with buyers through advertising, personal selling and sales promotion.
NCERT (2026-27 Edition): “Marketing Mix The marketing mix consists of various elements, which have broadly been classified into four categories, popularly known as four Ps of marketing. These are: “2. Price: Price is the amount of money customers have to pay to obtain the product. In case of most of the products, level of price affects the level of their demand. The marketers have not only to decide about the objectives of price setting but to analyse the factors determining the price and fix a price for the firm’s products. …” |