price

• Price


  The amount of money charged for "something"
• Function of Price


  Pricing has the dual marketing function of making products affordable to its target market and at the same time, reflecting the value of the product
• Five common pricing strategies

  • Cost-plus pricing - simply calculating your costs and adding a mark-up
  • Competitive pricing - setting a price based on what the competition charges
  • Value-based pricing - setting a price based on how much the customer believes what you're selling is worth
  • Price skimming - setting a high price and lowering it as the market evolves
  • Penetration pricing - setting a low price to enter a competitive market and raising it later
• Promotion


  The explicit communication strategy adopted by an enterprise to elicit the patronage, loyalty, and support not only from its customers but also from its other significant stakeholders
• Main function of Promotion

  To build and improve consumer demand
• Three critical factors for effective promotion

  • Credibility of the communicator
  • The message and the medium of the message
  • The receptiveness of the audience
• Packaging


  All those activities related to designing, evaluating and producing the container for a product
• Packaging is the silent "salesman" in the store
• People


  The ultimate marketing strategy. People sell and push the product, search hard to find the right market, distribute, promote, price, and sell the products in the most attractive market places, and aim to please the customers through continuing service and product enhancements long after the customers have bought the product
• The marketing efforts of people are organized at four levels

  • To create customer awareness
  • To arouse customer interest
  • To educate customers as they evaluate their buying choices
  • To close the sale and deliver the products
• Positioning


  The act of communicating to consumers the overall positive impression for a brand, relative to competition
• Positioning examples


  • Gardenia positions its high fiber wheat bread as the "healthy bread"
  • Promil is strongly associated with gifted children