📘 CBSE Class 12 Marketing Project – PRICE
1. Cover Page
Title: Marketing Management Project – Price
Prepared by: Your Name
Class: XII A
Roll No: ___
Session: 2025–26
School Name: ___
2. Index
1. Introduction to Marketing
2. Marketing Mix (4Ps)
3. Concept of Price
4. Importance of Price in Marketing
5. Factors Affecting Price
6. Pricing Methods/Strategies
7. Case Study: Pricing Policy of Maggi Noodles
8. Comparison of Pricing with Competitors
9. Graphical & Tabular Presentation
10. Analysis & Findings
11. Conclusion
12. Bibliography
3. Introduction to Marketing
Marketing is one of the most important activities of any business. It refers to a wide range of
activities undertaken by a company to promote, sell, and distribute its products and services.
According to the American Marketing Association (AMA):
“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.”
Marketing is not only about selling a product. It is about identifying consumer needs, designing
products accordingly, setting the right price, ensuring proper availability (place), and using
effective promotion strategies.
The success of a business does not merely depend on producing goods but on making them
available to consumers at the right price and in the right way.
4. Marketing Mix (4Ps)
The marketing mix refers to the set of marketing tools used by a business to achieve its
marketing objectives. These tools are popularly known as the 4Ps of Marketing:
1. Product – What the company offers to satisfy consumer needs.
2. Price – The amount consumers are willing to pay for the product.
3. Place – The distribution channels through which the product reaches consumers.
4. Promotion – The communication strategies used to inform and persuade consumers.
Out of these, Price is the only element that directly generates revenue for the firm, while the
other three incur costs. Hence, pricing decisions are very crucial for the survival and profitability
of a business.
5. Concept of Price
Price is the exchange value of a product or service in monetary terms. It represents the amount
of money a customer must pay to acquire a product.
Formal definition:
“Price is the amount of money paid by a buyer to the seller in consideration of the purchase of a
product or service.”
For example, the price of a bottle of soft drink may be ₹40, the price of a smartphone may be
₹20,000, and the price of a luxury car may be ₹50,00,000.
Thus, price acts as a bridge between producers and consumers:
For producers, price determines revenue and profit.
For consumers, price determines affordability and value.
6. Importance of Price in Marketing
1. Source of Revenue – Price is the only element of the marketing mix that brings money
into the firm. Without the right pricing, even the best product cannot ensure profitability.
2. Affects Demand – Price influences consumer demand. A lower price may attract more
customers, while a higher price may limit the demand.
3. Competitive Tool – In a market with many sellers, price is a powerful weapon to fight
competition. For example, telecom companies like Jio reduced prices drastically to
capture market share.
4. Psychological Effect – Consumers often judge quality through price. Higher prices
create a perception of premium quality, while lower prices indicate affordability.
5. Positioning Strategy – Price helps position a product in the minds of consumers, e.g.,
Rolex is positioned as a luxury watch due to its premium pricing.
6. Survival and Growth – Correct pricing ensures survival in tough markets and supports
long-term growth.
7. Factors Affecting Price
Pricing decisions are influenced by various internal and external factors:
Cost of Production: The price must cover the cost of raw materials, labor, packaging,
and overheads.
Demand of Product: Higher demand allows higher pricing; low demand may require
discounts.
Competition: In a highly competitive market, firms often keep prices close to their
competitors.
Government Policies: Taxes, GST, subsidies, and price control regulations affect
pricing.
Marketing Objectives: A firm may aim at profit maximization, market penetration, or
survival, which influences price.
Consumer Psychology: Perceptions of value and quality also shape pricing.
(A flowchart/table can be inserted here to show these factors visually.)
8. Pricing Methods/Strategies
1. Cost-plus Pricing – Adding a margin to cost of production.
2. Competitive Pricing – Matching or slightly undercutting competitors’ prices.
3. Penetration Pricing – Setting a low price initially to enter the market.
4. Skimming Pricing – Charging a high price at launch, later reducing it.
5. Psychological Pricing – Setting prices like ₹99 instead of ₹100.
6. Value-based Pricing – Setting price based on the value perceived by consumers.
(Insert examples of real companies for each strategy to make it stronger.)
9. Case Study: Maggi Noodles
👉 Example chosen: Maggi 70g Noodles
Maggi follows competitive pricing to remain affordable for the middle-class segment.
For decades, Maggi has maintained a price of around ₹10–15, while competitors like
Yippee and Top Ramen are slightly higher.
This strategy helps Maggi capture a large share of the instant noodles market in India.
Price
Product Competitor Price (₹) Remarks
(₹)
Maggi 70g 15 Yippee – 18 Maggi is cheaper & more popular
Maggi Family Pack 60 Yippee Family Pack – 70 More affordable, strong brand recall
10. Comparison of Pricing
(Insert a bar graph or pie chart comparing Maggi, Yippee, and Top Ramen prices.)
Maggi: ₹15
Yippee: ₹18
Top Ramen: ₹20
Analysis: Maggi maintains the lowest price, ensuring maximum customer preference.
11. Analysis & Findings
Pricing is a key determinant of consumer demand.
Affordable pricing ensures mass popularity, especially in FMCG products.
Maggi’s success lies in maintaining a balance between cost, affordability, and
competition.
Premium products (like iPhones) succeed with skimming pricing, while FMCG thrives
on competitive pricing.
12. Conclusion
Price is the most flexible and crucial element of the marketing mix.
It directly influences revenue, demand, and consumer choice.
The right pricing strategy ensures survival, profitability, and long-term growth.
Businesses must carefully analyze costs, demand, competition, and consumer psychology
before fixing prices.
13. Bibliography
NCERT Business Studies (Class XII)
Philip Kotler: Marketing Management
Company websites: Nestlé India, ITC, Hindustan Unilever
Business articles from The Economic Times and Business Standard
