Pricing Between Marketing And Sales Promotion

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Introduction
• Self-paced training
• Introduction to pricing, pricing in relation to sales promotion, pricing strategies, common pricing mistakes
• It takes about 30 minutes to complete the course
• Transcript and keyboard shortcuts are available
• Course completion confirmation from the SBA
Course Objectives
After completing this course, you will be able to:
• Define pricing
• Explain how costs affect pricing
• Describe pricing as a component of the marketing mix
• Identify pricing objectives
• Describe pricing strategies in relation to sales promotion
• Explain the three general pricing approaches for small businesses
• Identify the common pricing mistakes
• Recall the legal issues involved in Antitrust, loss leader pricing, and price
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Pricing vs. Costing
• To determine the price for the product or service, the firm must understand the costs for running the business. If the price is not enough to recover costs, the cash flow will be negative and the business will fail.
• Costs include: o Property and equipment leases o Loan repayments o Inventory o Utilities o Financing costs o Salaries/wages/commissions. o Markdowns o Shortages o Damaged merchandise o Employee discounts o Desired profit
• Profit should be added to the list of costs and treated as a fixed cost. Nobody runs a business just to break even.
Pricing as a Component of the Marketing Mix
Generally, marketing mix denotes the four Ps of marketing:
• Product
• Price
• Place (distribution)
• Promotion Before a product is developed, a firm needs to come up with a marketing strategy. This involves selecting the target market and product positioning. Usually, there has to be a balance between product quality and price. This way, price plays an important role in the marketing mix.
Pricing will always be determined by these tradeoffs
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