The specific group of potential buyers that the firm aims to sell to
The marketing mix
Place
3 things about how business choose the place
Need to cover the cost of production
The price of competitors goods or service
What customers willing to pay
3 things about how the business deciding the price strategy
Is it new product?
Is the product unique?
Is there a lot of rivals?
What is the cost to make product?
Not sure need to confirm with Mr.Avis
8 Price strategies
Price skimming
The price is set very high because the new product has "Novelty Value"
Usually in Technology product
Penetration Pricing
The price is set well below competitors price in order to enter a new market
To get market share
Competitive Pricing
The price is the same as, or just below the competitor's price
Cost- Plus Pricing
The price is the cost of production plus the profit mark-up
Promotional Pricing
The price is set very low for short time only
Dynamic Pricing
Businesses charging different prices for their products depending on which group of customers buy them and when they sell
Prestige Pricing
The practice of pricing goods or services at a high level in order to appearance quility
Psychological Pricing
Using numbers or decimals to make the customer believe the product is cheaper than it really is
Promotion
Why a business promotes it's products/service
It inform the customers about the product
How to use it, and where is it, what is it......
It persuade them to buy it
Promotional Method
Advertising
Television
Online
Outside of bus
Billboard
Radio
Flyer of letterboxes
Medium chosen by budget
Sponsorship
Paying to have the name or brand of your product associated with a particular organisation
RedBulls
Branding
A way to distinguish your brand from your competitors
Where colors, images or logos used to present a business or its product
Price
Price Competition Vs.Non Price Competition
Price Competition
The firm lowers the price of product to encourage customers to buy it.
Discount/Speical Sales
Interest free terms
Buy one get one free
Loss leader
The pricing of a product below it cost of production to attract customers to spend more(time/money) on other product
Non-Price Competiton
A market strategy in which one firm distinguishes its product from competing without reducing price.
Packaging
Branding
Unique association/ image for product and impressed the consumer's mind
Advertising
Promoting a product
Sponsorship
Associating your product with a prestigious event.
Servise
Location
Loyalty Schemes
Encourage the customers purchase repeatly
Competitions
Offer a prize to try to increase sales.
Gift with purchase
Firms offer an extra product to entice customers to buy their goods.
Price War
When a group of competing firms all reduce their prices to try have a lovest price(even if it causes a loss for a short time)
When two or more rival companies lower the prices of comparable products with the goal of stealing customers from their competitors or gain market share
Purpose:
Increase a company's market share quickly by removing some of competition from the marketplace
Why it is bad for company?
The prices of product are so low and cannot coviering the cost of production
Company cannot making enough profit from there.
Compare
Advantages
For cusumers
Lower price means better deals
For business
to gaining new customers
the winner can become more financially profitable and longevity
Disadvantage
For customers
after price war——leading less competition and higher prices
Fewer choices for product and service
For business
The loser will lose market share and profits
Workers are left with fewer companies in their local economy for which to work
