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Direct selling
: by sales personnel 

Public relations
: crisis management, obtaining favourable press coverage 
Price 
Products have to be sold at a price which meets the organisation's profit objectives. Pricing is a very 
practical matter and important part of marketing work. 
(a) The 
price element of the mix 
itself covers the basic price, discounts, credit terms and interest 
free credit. 
(b) 
Price is influenced by demand
and the product's stage in its life cycle. 
(i) 
Penetration
pricing: a low price is charged to persuade as many people as possible to buy 
the product in its early stages. 
(ii) 
Skimming
: prices are set to cream off the highest level of profits even though this restricts 
the number of people able to afford the product. 
BPP Tutor Toolkit Copy

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PART B: BUSINESS ORGANISATION STRUCTURE, FUNCTIONS AND GOVERNANCE 
 
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(c) 
Price is also part of the image 
of the product: rightly or wrongly, a high-priced product is often 
assumed to be of better quality than a cheaply priced product. A high price also conveys an 
image of exclusivity. 
(d) 
Price is a weapon against 
competitors
. 
Service marketing 
In addition, for 
services 
(eg hospital care, air travel) there are three more Ps. 
(a) The 
people
who deliver the service (eg smiling or surly staff). 
(b) The 
processes
by which the service is delivered (eg queuing systems at Disney World). 
(c) The
 physical evidence 
of the service (such as a glossy brochure). 
This 
extended marketing mix 
can also be applied to the supply of goods.