ENTREPRENEURSHIP

• Pricing Strategies

  • Penetration Pricing
  • Skimming Pricing
  • Competition Pricing
  • Product Line Pricing
  • Bundle Pricing
  • Premium Pricing
  • Psycho-logical Pricing
  • Optional Pricing
  • Cost Plus Pricing
  • Cost Based Pricing
  • Value Based Pricing
• The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.

  Penetration Pricing
• A company charges a higher price then slowly lowers the price to make the product available to a wider market because it has a considerable competitive advantage. However, the advantage tends not to be sustainable. The higher price attracts new competitors into the market, and the price inevitability falls due to increased supply.

  Skimming Pricing
• Competition Pricing


  A pricing method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand. In reality a firm has three options and these are to price lower, price the same or price higher than competitors.
• Product Line Pricing


  The practice of reviewing and setting prices for multiple products that a company offers in coordination with one another. Rather than looking at each product separately, and setting its price, product-line pricing strategies aim to maximize the sales of different products by creating more complementary, rather than competitive, products. If you offer more than one product or service, consider the impact that one product's or service's price will have on the other.
• Product line


  • Starbucks may have product lines such as coffee, tea, and snacks
  • At a Nike (NYSE: NKE) store, product lines may consist of basketball, soccer, and golf. Under each sport product line, there may be sub-product lines, such as footwear, clothing, and sporting equipment.
• Bundle Pricing


  The act of placing several products or services together in a single package and selling for a lower price than would be charged if the items were sold separately.
• Premium Pricing


  Setting the price of a product higher than similar products. The goal is to create the perception that the products must have a higher value than competing products because the prices are higher.
• Psycho-logical Pricing


  It is the best practice of setting prices slightly lower than rounded numbers, in the belief that customers do not round up these prices and, and so will treat them as lower prices than they really are. This practice is based on the belief that customers tend to process a price from the left-most digit to the right, and so will tend to ignore the last few digits.
• Optional Pricing


  The company earns more through cross-selling products along with a basic core product. The main products does not have many features (and is priced low) which can be enhanced through optional or accessory products which are sold at premium by the same company
• Cost Plus Pricing


  Involves adding a markup to the cost of goods and services to arrive at a selling price. Under this approach, you add together the direct material cost, direct labor cost, and overhead costs for a product, and add to it a markup percentage in order to derive the price of the product.
• Cost Based Pricing


  A pricing method in which a fixed sum or percentage of the total cost is added (as income or profit) to the cost of the product to arrive at its selling price.
• Value Based Pricing


  A price-setting strategy where prices are set primarily on consumers' perceived value of the product or services.
• Promotional Mix

  • Advertising
  • Public Relations
  • Personal Selling
  • Sales Promotions
  • Direct Marketing
• Advertising - Radio


  Gives the advantage of selecting the territory and audience to which the message is to be directed. It is also cheaper than TV advertising.
• Advertising - Television


  This is the latest and the fast-developing medium of advertising and is getting increased popularity these days. It is more effective as compared to radio as it has the advantages of sound and sight. On account of pictorial presentation, it is more effective and impressive and leaves a lasting impression in the mind of the viewer.
• Advertising - Print


  carry their messages entirely through the visual mode. These media consists of newspapers, magazines and direct mail.
• Advertising - Electronic


  You can also advertise electronically through your company website and provide important and pertinent information to clients and customers. You can protect some parts of your website through passwords and give access to members. You can also send advertisements via direct e-mail as part of your promotional strategy.
• Advertising - Word of Mouth


  is important for every business, as each happy customer can steer dozens of new ones your way. And it's one of the most credible forms of advertising because a person puts their reputation on the line every time they make a recommendation and the person has nothing to gain but the appreciation of those who are listening.
• Advertising - Generic


  The promotion of a particular commodity is without reference to a specific producer, brand name manufacturer. Producers join together to expand total demand for the commodity, thereby helping their own sales. These activities are often self-funded through assessments on marketing called check-off programs.
• Public Relations


  the article that features your company is not paid for. The reporter, whether broadcast or print, writes about or films your company as a result of information he or she received and researched. PR involves sharing information with the public using platforms that do not require a payment, such as social media or through press releases shared with magazines and newspapers. The goal of public relations is to shape public perception of a business, presenting image through various strategies to its various constituents.
• Personal Selling


  occurs when an individual salesperson sells a product, or solution to a client. Salespeople match the benefits of their offering to the needs of a client. Today, personal selling involves the development of longstanding client relationships.
• Personal Selling Process

  • Prospecting
  • Making its first contact
  • The sales call
  • Objection handling
  • Closing the sale
• Sales Promotions


  is any initiative undertaken by an organization to promote an increase in sales, usage in trial of a product or service (i.e., initiatives that are not covered by the other elements of the marketing communications or promotions mix).
• Sales Promotion Techniques

  • Free Gifts
  • Free samples
  • Free trial
  • Customer Contests
  • Special Pricing
• Free Gifts


  There are many ways to utilize this particular sales promotion technique. A newly opened store, for example, may offer the first 10 customers free items worth 100 pesos.
• Free samples


  is a technique used to introduce new product to the marketplace. Samples give the consumer a chance to see how well they like a product or try something they would not normally buy.
• Free trial


  is a way for consumers to try a new product while eliminating risk. It may be used when a product is unique to the marketplace.
• Customer contest offer the customer a chance to win prizes like cash or store merchandise.
• Special Pricing


  is used to offer customers a lower price for a short period of time or to purchase in multiple quantities. Ex., 3-for-100 pesos…
• Direct Marketing


  A promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman. It is a targeted form of marketing that presents information of potential interest to a consumer that has been determined to be a likely buyer.
• Forms of Direct Marketing

  • Brochure
  • Phone calls
  • Coupons
  • Newsletters
  • Catalogs
  • Text Messages
  • Email
  • Post cards
  • Fliers
• 1. radio
  2. television
  3. electronic
  4. word of mouth
  5. generic


  types of advertising
• Is a set of controllable and interrelated variables composed of product, place, price, and promotions that a company assembles to satisfy a target group better than its competitor.

  Marketing Mix
• 1. product
  2. place
  3. price
  4. promotion
  5. people
  6. packaging
  7. positioning


  The 7P’s of Marketing
• Refers to what the business offers for sale and may include products or services. Products decisions include the quality, features, benefits, style, design, branding, packaging, services, warranties, guarantees, life cycles, investments, and returns.

  Product (creating value)
• Represents the location where the buyer and seller exchange goods or services. It is also called as a distribution channel. It can include any physical store as well as virtual stores or online shops on the internet.

  Place (delivering value)
• Is the value of money in exchange for a product or service; the price is the amount or value that a customer gives up to enjoy the benefits or having the product or services.

  price (capturing value)
• Refers to the complete set of activities, which communicate the product, brand or service to the user. The idea is to attract people to buy your product over others. Advertising, Personal Selling, Sales, Promotion, Direct Marketing, and Social media are examples of promotion

  Promotion (communication value)
• Your team, a staff, that makes it happen for you. Your audience and your advertisers are the people in marketing. This consists of each person who is involved in the product or service whether directly or indirectly. People are the ultimate marketing strategy. They sell and push the product.

  People