The Price And The Value Of Price In International Marketing

'Place ' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.

The Marketing Mix is the name given to the elements which are the key components which a marketing plan should be based upon. Typically in Marketing literature there are four elements: price, place, promotion and product, however this is now sometimes expanded to incorporate another 3 elements: people, physical evidence and process. Pricing policy is clearly very important to the marketing mix and is affected by variables such as firm’s objectives, the nature of competition, demand and firm costs. Firms operate pricing in different ways according to their marketing strategy and the industry in which they participate; an example of pricing methods will be shown and evaluated further in the

Pricing is the most important aspect of the marketing mix. Price is the only element of the marketing mix, which produces a turnover for the organization. Pricing plays a crucial role in the product consumption. Pricing products too high or low results in loss of sales for the company. The pricing of each organization based on its corporative objective.

As an extremely important decision for a company, pricing is the only element of the marketing mix that generates revenue. The positioning of a product in the market is dependent on its pricing since customers tend to greatly resist attempts to change price once it has been set up. As compared to other elements in the marketing mix, price is the variable with which a competitive response can be quickly implemented. On the contrary, distribution basically involves the process of getting the product from the manufacturer to the intended consumer.

Neil Borden developed first Marketing Mix in late 1940s; the published article in 1964 was called “The Concept of the Marketing Mix”. The concept introduce several parts of marketing mix such as: product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, fact- finding and analysis. Current and well-known 4Ps Marketing Mix was developed by Jerome McCarthy in the 1960s. This simplified theory includes four parts: product, price, place and promotion. This marketing theory is introduced to most of marketing books. The title place is responsible for all acpects of the process from the manufacturer to the consumer. The process includes all institutes involved (Shaw 2012)to provide availability of goods, in other words so called “channel of distribution”. Although in the sientific literature the term “channel of distribution” has a curtain variety of synonyms, to avoid misunderstandings in this paper the author will use only a distribution channel, a market channel, and a trade

According to Cadogan and Foster (2000), price is probably the most important consideration for the average consumers. Price serves as the stronger loyalty driver. In addition, consumers' satisfaction can be built by comparing price with perceived costs and values. Consumers with high brand loyalty are willing to pay a premium price for their favored brand, if the perceived value of the product are greater than cost.

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).

* To draw the maximum numbers of customers to the product, it must be correctly priced. The customers attach a value for the money they are paying for the product. Therefore, the price of the product must be appropriate. This way, the company would be able to entice the maximum customers. The company must first analyze the price sensitivity of the customers. This establishes that by a small change in price whether the customers would remain loyal to the company or would shift brands and preferences.

Marketing is essentially the act of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. There are many important components of marketing, including the marketing mix. Generally, the marketing mix refers to the 4 P’s, product, price, place and promotion. Place is also referred to distribution, which is what will be discussed in the subsequent sections. Alternative strategies relating to distribution will be presented, a final strategy will be selected and the reasoning behind the choosing will be discussed. The alternative strategies will revolve around marketing channel, direct and retailer. Distribution intensity, exclusive and intensive along with channel intermediaries will be discussed in conjunction. Additionally, it should be noted that this discussion of distribution revolves around a backpack that is to be targeted at Outdoor Enthusiasts, in the simulation, Marketing Practice. It should be noted that intensive distribution was not a considered strategy due to the inability to successfully apply this intensity in the simulation given the target segment and product price.

ity, brand equity, and other nonpriee factors that might add value to a product or service. Virtually every eompetitive move is based on price, and every counter measure is a retaliatory price cut. In the second example, the competitive situation is subtly different - and yet still

Does price influence your buying decisions? In comparison, the second buyer is greatly influenced by pricing, while the first buyer admits that price is a luxury he can afford, the idea of status among his peers is the greater influence. The first buyer made his purchase decision based on the preferred brand of choice, while the second intentions were on situational factors, (Armstrong 2005).

2. Marketing mix strategy: pricing must be coordinated with product design, distribution and promotion decisions to form a consistent and effective marketing program. Decisions made for other marketing mix variables may affect pricing decisions. Thus, the marketer must consider the total marketing mix when setting prices. If the product is positioned on non-price factors, then decisions about quality, promotion and distribution will strongly affect price. If price is a crucial positioning factor, then price will strongly affect decisions made about the other marketing-mix elements. In most cases, the company will consider

Pricing is one of the most important elements of the marketing mix as it is the only mix, which generates a turnover for the organization; the remaining 3p's are the variable cost for the organization. It costs to produce and design a product; it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship (Constantinides, 2006). Pricing a product too high or too low could mean a loss of sales for the organization. Pricing should take into account the following factors:

Pricing is an important marketing strategy which helps organizations leverage and effectively use decision-making in a vertical and horizontal fashion to impact the demand for the products as well as bring a competitive effect ADDIN EN.CITE Noble1999552(Noble & Gruca, 1999)55255217Noble, Peter M.Gruca, Thomas S.Industrial Pricing: Theory and Managerial PracticeMarketing ScienceMarketing Science435-4541831999INFORMS07322399http://www.jstor.org/stable/19318110.2307/193181( HYPERLINK l "_ENREF_11" o "Noble, 1999 #552" Noble & Gruca, 1999). Effective pricing strategies help to optimize the revenues of buyers by maximizing revenue for the organization. For retailers, they have embarked on data collection activities which provide crucial information to enable them make effective pricing strategies for the present market conditions. This information helps the retailers to understand the price sensitivity of demand as well as how to influence the price elasticity of demand towards the success of their marketing strategies. This first part of the paper evaluates the type of information collected by typical retailers in contrast to information that is collected by retailers who run consumer loyalty schemes. It also finds how these pricing strategies apply to the classical economics theory of supply and demand and discusses the factors that affect the price point purchase behavior of consumers. The second part looks at the purchase decision-making

“Pricing is the moment of truth” (Stottinger,2001). Probably this affirmation is essentially valid in domestic marketing, even more in international marketing. Surprisingly, the literature in this area is characterized by a gapthere is a gap in the literature in this area.