Which statement correctly describes the special role of price in the traditional marketing mix?
Correct answer: A. It is the only element that directly generates revenue
- A. It is the only element that directly generates revenue
- B. It is the only element that determines product quality
- C. It is the only element controlled by retailers
- D. It is the only element used in promotion
Explanation
Product, place and promotion generally require expenditure, whereas price produces revenue when customers buy. Price also influences demand, positioning and perceived value, so it is not merely a cost decision.
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Marketing covers how organisations identify customer needs, create value and exchange products or services through suitable markets. Key concepts include market segmentation, targeting, positioning, consumer behaviour, the marketing mix of product, price, place and promotion, branding, product life cycle and differences between marketing and selling.
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