c4 Flashcards
Importance of pricing
affect sales,
price are associated with product quality and prestige
types of pricing show case
plastic slide on tags
price tags
barcode slip
Break even analysis
no loss or profit .
Pricing strategy
penetration - set low than normal price to speed up market acceptance
required : keep sale price low and the demand for product will be dependent on price
skimming price - to set price very high and lower it back to normal
require :
- price is justified by product quality image and perceived value
- sufficient demand
- little to no competition
follow the leader pricing - set price similar to competitors, following the major competitor
use of pricing tool technique :
product line pricing - related product within product line same price
optional pricing - involves pricing of optional / accessory product along w main product
product bundle pricing :
-pricing a package of related product by combining several product and offer bundle at reduced price
psychological pricing
-psychology of price in deciding how to price product, higher the money the better the quality
-or to give false impression that the product is cheap by pricing it one dollar cheaper
captive product pricing :
setting low price for main product but higher price on accessory
promotional pricing :
pick a few product below listed price, to short term increase sale (lost leaders) to attract customer in hope that they will buy other items at normal price
promotion
persuasive communication between business and its target market
types of promotion strategy
personal selling - 1-1 good knowledge is required
advertising - impersonal presentation of product / business through mass media like newspaper , online etc
sales promotion - short term incentives to encourage purchase or sales of product e.g samples, coupon , free gift , advertising specialities
publicity and public relation
-building a good cooperate image of company and its product
public relation - any communication / activity to win goodwill or prestige for company
publicity - information about company appear in news media and it’s not paid
direct marketing - sell product directly to public through, mail telephone or electronic media
promotional mix
a combination of promotion strategy
it is ..
dynamic and must be adaptable
aim to increase customer awareness
Cognitive dissonance
discomfort / tension when customer have second thoughts about their purchase
product and product strategy
product - bundle of satisfaction that is offered to customers
product strategy - the way product is developed to make it marketable
3 level of product strategy
core : needs , satisfaction product offer
actual : look at physical offering
augmented : additional consumer service and benefits
placing strategy
making product/ available where customer wants it
onmi channel
a seamless shopping experience weather in store, shopping online , researching thru website on the phone or reaching the retailer through some other channel
location vs site
location - general position
site - specific unit
store image
first impression , and overall perception the customer has of the store , it is also the store personality
Store design
convey a im distinct imagine to customer
attract customer to store
go inside and encourage browsing , buy merchandise and services
