Marketing Strategies For The Marketing Strategy

As the customer has some fixed value on the product based on the market value comparing with other products in the market.

The key to successful pricing is to match the product with the consumer's perception of value.

Price is an important factor in the marketing mix not only because it drives revenue and business sustainability, but also because it acts as a signal of value to consumers. Consumers often use price as a way to gauge quality or exclusivity. Moreover, price can also help segment the market, by customer, product-form, location, time-basis, or price sensitivity. By offering products at different price ranges, a wider range of consumers can

According to Investopedia, it is simply “the worth that a product has in the mind of the consumer,” an influential point of consideration in his or her purchasing decision. Because most people hardly know the physical cost of manufacturing goods and services, they tend to rely on this abstract awareness to gauge the product’s significance, which in turn arbitrarily determines how much they are willing to pay for it. To further understand the distinction between real value and perceived value, University of Richmond business lecturer Joe Geiger presents the comparison of the $1 and $10 bills. He states that the bills are fundamentally indistinguishable: they are the same size, printed on the same type of paper with the same type of ink using the same labor and distribution processes. It is a basic truth, however, that one bill is worth more than the other. People still pay ten dollars for the $10 bill and only one dollar for the $1 bill, even though the factors which constitute each bill’s real value are identical. Through this scenario, Geiger reveals how customers pay based more on what they understand the value of the product to be and less on what it actually is, suggesting the importance for companies to recognize and place higher regard on the consumer’s evaluation of worth rather than their

Consumers always base their decisions on price. The price of an item is important as it can influence consumers to purchase the product or not. If a product is out of their price range most people aren’t likely to purchase the product unless

When Quiksilver announced the start of its women line Roxy in 1990, they defined the brand as a “fun, bold, athletic, daring and classy” brand for young women. Market segmentation is a crucial marketing strategy and Roxy utilizes the four bases that are commonly used for segmenting consumer markets including geographic, demographic, psychographic, and benefits sought segmentation. The geographic segmentation is ideally unlimited for the Roxy target market because the brand offers clothes for both warm and cold weather, however, it focuses mainly on the “beach lifestyle” and is generally more popular in beach towns. The demographic segmentation of the Roxy brand, is aimed to attract young women between the

the psychological meaning of a product to customers. On the other hand, cost is related

An analysis is done on how the customer perceives the company’s products in comparison to the competitors’ products. Based on this understanding and the competitors’ prices the pricing is done.

The constantly emerging of product, price, channel and messaging or/and creative differentiators in the business atmosphere inevitably contributes towards one’s product elimination or irrelevant. In those competitive edge scenario, marketers play as the devil advocates in manipulating and provoking consumer’s mind. They’re the one who have all the vital data regarding demographic (size, income, VALs,), purchasing power parity

The cost component of the customer value equation includes the actual cost of a particular good or service, acquisition costs, usage costs, ownership costs, maintenance costs, and disposal costs as depicted in figure 1. The sum of these costs provides the life-cycle cost for a good or service, which provide customers with a product’s economic value. Customers are always willing to pay more for products and services that have an economic value, or, more plainly, for products and services that save them money. To arrive at a product’s economic value, a company compares its product’s life-cycle cost with that of the main competing product. The difference in the two products’ life-cycle costs is the economic value of the company’s product

what their consumers truly wanted in a product. Over the last century, the marketing landscape

Quite often, consumers purchase goods and services based on their perceived need. Upon making the decision that a need is present and a solution is available consumers are more equipped to react to that need. Although previously perceived that consumers will normally accept prices as presented by suppliers that remains to not be the case. Consumers assess and process prices based on past purchases and other psychological process they went through previously such as persuasive marketing strategies, accessibility of the goods or services and possibly information gathered from prior purchasers of a product. There are countless options that are available to consumers. Consumers are then faced with the choice of choosing the product that best fulfills their need at that given point. Consumers who are knowledgeable regarding prices will be aware of the approximated price for products (Zhao, Zhao & Deng, 2015).

With traditional pricing, problem arises when the product or service takes longer and cost more than planned. Customers will start to question the integrity of the company they chose, and they may think more about the hours instead of the product or service (Altman, 2015). Customer value is the difference between customer-perceived benefits and price, therefore, higher perceived benefit and/or lower price would encourage customers to choose certain products (Leszinski & Marn, 1997). While cost and competition based pricing fail to recognize the importance of customer perception, value pricing takes customers’ value into consideration.

Businesses must always strive to satisfy consumers’ wants and needs. In order to do so, marketers conduct research to learn consumers’ impression and awareness on the companies and their opinions on the companies’ products and services. Consumer perception is defined as a process where consumers select and gather information then form opinions regarding products. Together with advertising, consumer perceptions strongly affect consumer behaviors. The study of consumer judgment offers the companies opportunities to know how their consumers behave in the markets and to develop marketing strategies in order for the companies to reach the primary goal of earning a profit.

But marketing based on hard selling carries high risks. It assumes that customers who are coaxed into buying a product will like it and if they don‘t, that they won‘t bad mouth it or complain to consumer organisations and will forget their disappointment and buy it again.