Unit 3 p6

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

Product- A product is anything that can be offered to a market to satisfy a want or need, products include physical goods, services, experience, events, persons, places, properties organisations, information and ideas. It is therefore the combination of goods

First of all, penetration pricing is the major determinant of the price and that is employed when the product managers have to give most of the value to the customers and keeps a small margin. Chatime decided use penetration pricing where set a lower price of milk tea than the eventual market price to attract

Based on pricing our product, after we see that our competitors were undercutting us on price in the Low-End/Traditional and meeting the demand increased, we lower our price and at the time of their stock out, we get to take their potential market share at a higher profit level.

As per Ian Ruskin Brown and Greg Clark “ Marketing mix is the term used explaining the different elements comprising the offer that the different companies makes to their customers”. (Brown and Clarke, 2000:44). E.Jerome McCarthy in early 1960s came up with the four Ps in the marketing mix. According to him these 4ps are “ Product, price, place and promotion”.( McCarthy and Shapiro 1975: 35). Refer Appendix I for the pictorial representation. But the view of Richard Sandhusen is that the four marketing mixes should be ‘price, product, promotion and distribution’ (Sadhusen, 2000:319). According to Steven Stralser ‘in order to create a marketing strategy and plan that touch all the areas of marketing to position a product, maximise revenue etc a few more components have to be considered which are, Marketing segmentation, Marketing Strategy, Marketing research , Pricing, placement and value chain.’(Stralser,

The emergence of high-low pricing tactics materialized out of an earnest desire to retain a profitable margin of sales. Usually, this pricing strategy involves a period of high, often subjective, initial prices followed by a period of low discount prices. One can attribute the effectiveness of using the

The 4 P’s of marketing, product, price, place and promotion, together these four make the marketing mix, They are mostly the main elements of marketing and most, if not all, of what you can control about a marketing campaign. These are a set of strategies to achieve an organizations objectives and make sure that customer needs are satisfied. Just like different organizations Rock Jam uses the most basic way of a marketing mix , and that’s considering the product, price, place and promotion. The product which is the artist, a record, a song, a concert, a T-shirt, a download, a physical CD, a ring tone, access to an exclusive online portal or fan club, these are the things sold. In fact, the idea of a music product has become increasingly

The marketing mix is a combination of 4 P’s (product, price, place and promotion) that should be used in conjunction with each other to ensure a competitive edge over other companies. ‘The marketing mix is designed to produce mutually satisfying exchanges with a target market’.

Also when a customer tends to see the same company products everywhere and that too at a slightly elevate rate, and then the element of ‘Buyers illusion’ comes into the picture. The customers tend to believe that the product is priced higher as it is superior in quality and better as compared to other similar products priced at a lower rate.

Segmented pricing takes several forms. Under customer segment pricing, different customer pay different prices for the same product or service. Museums, for example, may charge a lower admission for student and senior citizen, another example is tether in France they charge a cheaper arte for student during the week. Under product form pricing, different versions of the product are priced differently but not according to differences in their costs. For instance a 1-liter bottle (about 34 ounces) of Evian mineral water may cost $1.59 at your local supermarket. But a 5-ounce aerosol can of Evian Brumisateur Mineral Water Spray sells for a suggested retail price of $11.39 at beauty boutiques and spas. The water is all from the same source in the French Alps, and the aerosol packing costs little more than the plastic bottles. Yet you pay about 5 cents an ounce for one form and $2.28 an ounce for the other.

The value-pricing strategy, in marketing is essentially a business strategy utilized in companies to set prices and promote products based on how much benefit and usefulness customers identify a product, good, or service to have (Thibodeaux, 2016). Furthermore, value-pricing strategy is a concept of determining a price that captures a greater portion of customers and what they are willing to pay for that product or service. Moreover, it 's how customers base their decisions when they intentionally think about which product to purchase. Likewise, this strategy employs the buyer 's knowledge, attitude,and viewpoint of monetary worth and not the actual seller 's cost as the key aspect of pricing. Therefore, when utilizing value-pricing strategy, it is essential to use the buyer 's perception of value (Marketing-Insider, 2016). Customer value-based pricing is setting a price based on buyers’ perceptions of value and in addition, a price must be set ahead of time within the marketing timetable before it is welcomed by customers versus setting the price of the product after the product is already designed and implemented.

The marketing mix was also another useful tool that determined the success of the business enterprise. Bagley et al (2011:264) define the marketing mix as a decision making tool for deciding how to manage customers’ relationship by providing goods and services to meet their required needs. Sutherland and Canwell (2007:13) point out that the marketing mix is a balance between the four main elements needed to carry out marketing strategy. The four elements include product, price, promotion and place. The use of these elements of the marketing mix had a great effect on the business success.

Skimming strategy were the company sets high price for start and after the price is lowered. The purpose is to make profits from all the layers of the market.

Marketing mix refers to the enterprise for their target market needs, control various marketing factors (product, price, place and promotion) to optimize the combination and comprehensive utilization, in order to accomplish better economic and social benefits (Chai, 2009, p.4). Place and product will be attached more importance in this section.

Pricing above competition may be considered when location, exclusivity or unique customer service can justify higher prices. Retailers that stock high-quality goods that isn't available at any other store are quite successful in pricing their products above their competitors.