Promotional Pricing And Marketing Strategies

PROMOTIONAL PRICING :

Promotional pricing often involves reducing prices to unsustainably low levels. In some cases, products and services may be sold at or below cost. A buy-one-get-one-free scheme may even be used. When this is done, interest in goods can be greatly increased, meaning sales are also likely to increase dramatically.

The product marketing mix consists of the 4 P’s (Product, Pricing, Promotions and Placement) and the service marketing mix consists of the remaining 3ps(people,process, physical evidence).These are discussed in my article on product marketing mix – the 4 P’s.

Let us brief up each category –

Product –

Products are what is delivered to the customers. It can be in the form of a good, service or an idea. What was

Earlier most of the goods were brought by customers as it was a sellers market. Promotion today is all about customer connect point through every possible media including social media.

Pricing –

Price is the base for all the companies. As we know finance is the life blood of any business and profit plays an important role in price mix. Earlier there was the concept of cost and profit. Today price is the willingness of the customers to pay.

Ex- people are ready to pay 60000 for a mobile phone.

This is the service marketing mix (3p) which is also known as the extended marketing mix.

LETS BRIEF UP :

People – People is a part of service marketing mix. Humans are the asset of the company. Example : If you have an real estate company , your real estate agents define you. If you have a school , your teachers and service staff defines you.

Good employees means good company, as simple as that.

Earlier , Customer segmentation was fairly simple and statistical. Today it has become more complicated due to change in lifestyle and more segmentation demands

Process – Service process is the method in which a service is transferred to the end customer.

Physical Evidence

It will charge high price If company is using intensive advertising to promote the sale of product then it. There are various other marketing methods which affect price of a product type of packing, distribution system, salesmen employed, customer support services etc.

It is because of prices that a customer is very sensitive to any product. Various names can be given Price for example, price for medical , price for using road etc. is toll, price for job is salary, price for apartment is rent etc. For example, if the price of Pepsi is changed from Rs 7 to Rs 8.50 then the customer will start demanding Coke which is still available at Rs And so the pricing decisions are taken with care and caution as it might affect your business drastically. The common commodities in essential commodities are Drugs, some food items, LPG etc. the category of essential commodities. methods of marketing used to promote the products affects the price of the product. More substitutes are available to protect the interest of general public, the then price has to be brought