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Task 6
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... Task 6 - The Marketing mix Price Cost based - It is when a business works out the total cost of producing a product by adding together all the fixed variables costs. Then it adds an amount for a profit, often called mark up, to give the selling price. The mark up is usually expressed in the form of a percentage. For example, if the kosher food shop works out that the total cost for producing a kosher chicken is £10. They decide they want to add a 10% mark up to create profit for them. This would give the following calculations: Total cost £10 Percentage mark up per chicken 10% of the total cost £10 x 10 divided 100 = £1.00 Total price = £11.00 Market based - It is when a business looks at how much other business are selling a product for and selling the same product for around the same price or maybe
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