Pricing is the basic tactic adopted by the companies to attain their objectives. However, it is also the most complex of the tactics to be pursued by marketers. Too high a price could dissuade buyers away from the product and get attracted to competitive offers while a price that may be perceived as too low may cause buyers to doubt its quality and value. Contrary to popular perception, price is not calculated on the basis of cost plus a reasonable profit. It is based on the brand image created in the consumer minds and a level the market is willing to bear.
INTRODUCTION Consumers are probably more influenced by point-of-purchase displays than any other form of advertising. The Point-of-Purchase Advertising is define as a form of advertising within a retail environment that is designed to influence the customer to purchase a product or service. The point-of-purchase merchandising is used to draw attention to a product or a service and it ultimately brings value to the shopping experience to prospective customer. First this is considered is to draw the attention to the point-of-purchase to give rise to increased sales, this could be done through using light and motion with 3D graphics to make the customer’s notice the display. Further, it is used to give the display pleasing appearance to customers.
The way the product is going to be priced is directly proportional to how it is going to sell in the market. If a product is priced higher or lower that its realized value, the product is not going to sell. Price is also affected by the distribution plan, markups and how are the competitors are going to price the rival product. Promotion: It includes sales promotion, advertising, special offers like coupons, discounts etc. Whatever the ways are used for promotion it is essential it should be suitable and valuable for the price, the product and the consumer who is going to buy the product and for whom it is being marketed.
Factors effecting buying behavior Brewster, Sparrow and Vernon (2007) explain about Factors that affect buying behavior and vary from person to person, age to age, and area to area. Every society follows its own norms, culture and values. At different stages of life our preferences change because of our age, needs, lifestyle, earning and psychological factors. These factors can be Internal (memory and way of thinking) or External (media, word of mouth, publicity and feedback). There are several factors, which pressure the buying
A lot of retail stores use these kinds of pricing strategies as they provide a platform to emotional consumers rather than rational consumers. Research on consumer behavior suggests that many consumers buy products on the basis of their emotional decisions. Psychological Pricing is a play on the perception of the consumer. It creates a reputation in the minds of the consumers of its perceived value. Pricing Strategies: Odd Even Pricing: It is also called charm pricing or nine end pricing.
Promotion is about a decision of how best to the related product to the target market and to persuade consumer to buy it (Lovelock, Patterson, & Walker, 1998). A communication program is important in marketing strategies because it plays three important roles: providing needed information and recommendation, persuading target customers to buy a specific product, and encouraging target customers to take action at specific times and place (Lovelock & Wright, 2002). Promotion activities can influence consumer’s way of thinking, their emotions, their experience as well as their purchasing. Promotion is a selling technique, in any marketing program; it should be involved with promotion. The product advertisement can be delivered by individual sales people, T.V, radio, internet, magazine, press, and all types of
Once the target market has been distinguished, it is now important to get to know these customers in more detail. Knowledge of your customers will help to distinguish patterns and even “buying cycles”. Surveys are a great way to gather in-depth information to find out what their customer wants, when they want it and where they want to buy it. The picture below outlines further steps in the marketing strategy process which included analyzing the competition which we have done in our “competitor analysis” section, it also shows defining the marketing mix which we will go into more detail later in this report, along with financial reports on how much of our funding
He could utilize the personal selling and mass selling methods of promotion very well. Promotion is defined as communicating information between a seller and a potential buyer or others in the channel to influence attitudes and behavior. Personal selling is one of the methods that follow promotion. This means when there is direct communication
Price is the one of the important elements of the marketing mix. Price is the most important consideration for someone to purchase something. For each product sold, the price offer by the company also can maximize profitability. Furthermore, company can benefit from lowering or raising prices, depending on customer’s needs and behavior. (Anon., 2015) So our company has use several pricing strategy to decide the price of the Multi-function Bottle.