Pricing Strategies

General pricing approaches Cost-based pricing Value-based pricing Competition-based pricing  Cost-based pricing Adding a standard markup to cost Ignores demand and competition Popular pricing technique because: Sellers more certain about cost than demand Simplifies pricing When all sellers use, prices are similar and competition is minimized Some feel it is more fair to both buyers and sellers  Value-based pricing Uses buyers’ perceptions of value rather than seller’s costs to set price. Measuring perceived value can be difficult. Consumer attitudes toward price and quality have shifted during the last decade. Introduction of less...

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Distribution Strategies

Conventional Distribution Systems Consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profits and there is little control over the other members. No formal means for assigning roles and resolving conflict.  Vertical Marketing Systems (adsbygoogle = window.adsbygoogle || []).push({});  Vertical marketing systems (VMS) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system and consist of: Corporate marketing systems Contractual marketing systems Administered marketing systems (adsbygoogle = window.adsbygoogle...

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Product Life-Cycle Strategies

Product life-cycle (PLC) is the course that a product’s sales and profits take over its lifetime. Product development Introduction Growth Maturity (adsbygoogle = window.adsbygoogle || []).push({}); Decline    Introduction stage is when the new product is first launched.Takes time Slow sales growthLittle or no profit High distribution and promotion expense    Growth stage is when the new product satisfies the market. Sales increaseNew competitors enter the market Price stability or decline to increase volume Consumer education Profits increase Promotion and manufacturing costs gain economies of scale Product quality...

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Product, Services and Branding Strategy

Products, Services and Experiences  A product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.  Service is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in ownership.  Experiences represent what buying the product or service will do for the customer.    Level of Products and Services  Core benefit: show the accurate time Actual product: Swatch, high quality that meet the Swiss watch standard, young and stylish design, packed in high-quality...

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Target Marketing Positioning for Competitive Advantage

STEPS IN SEGMENTING, TARGETING, POSITIONING Target Marketing  Evaluating Market Segments Segment size and growth Segment structural attractiveness Level of competition Substitute products Power of buyers Powerful suppliers Company objectives and resources Target Marketing: Selecting Target Market Segments TARGET MARKETINGTarget Marketing: Selecting Target Market Segments Undifferentiated marketing - targets the whole market with one offer.Mass marketing Focuses on common needs rather than what’s different Differentiated marketing - targets several different market segments and designs separate offers for each. Goal is to achieve higher...

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Marketing Segmentation

Creating Value for Targeted Customers 4 major steps Market Segmentation Market segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs. Market Segmentation 4 Major Bases Geographical segmentation Marketing mixes are customized geographically Demographic segmentation Most popular segmentation Demographics are closely related to needs, wants and usage rates Psychographic segmentation Lifestyle, social class, and personality-based segmentation Behavioral segmentation Typically done first Consumer...

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MicroEnvironment

The MicroEnvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. Microenvironment: The Company (adsbygoogle = window.adsbygoogle || []).push({}); Internal environment includes:Top managementFinanceR&DPurchasingOperationsAccounting  Microenvironment: Suppliers Provide the resources to produce goods and servicesTreated as partners to provide customer value  Microenvironment: Intermediaries Help the company to promote, sell, and distribute its products to final buyers. Include: Resellers Physical...

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MacroEnvironment

The macroenvironment consists of the larger societal forces that affect the microenvironment. Demographic Economic Natural Technological Political Cultural  Demographic Environment Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. Demographic environment is important because it involves people, and people make up markets. Demographic Environment: Changing Age Structure of the Population Generational marketing is important in segmenting people by lifestyle of life state instead of age. Baby boomers (1946 – 1964): Includes most affluent Asians Generation...

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Product/Market Expansion Grid

Product/Market Expansion Grid The product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification. Starbucks (adsbygoogle = window.adsbygoogle || []).push({}); Starbucks is an international coffee and coffeehouse chain based in Seattle, Washington, USA. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other...

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Strategic planning and BCG Matrix

Strategic planning is defined as: “The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.” (adsbygoogle = window.adsbygoogle || []).push({}); Mission StatementMission statement: The organization’s purpose, what it wants to accomplish in the larger environment Market-oriented mission statement: Defines the business in terms of satisfying basic customer needs Business Porfolio The business portfolio is the collection of businesses and products that make up the company. A strategic business unit (SBU) is a unit of the company that has a separate...

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Marketing Concepts

Production Concept Consumers will favour products that are available and highly affordable. The demand of a product exceeds the supply. Product’s cost is too high and improved productivity is needed to bring it down. Product Concept Consumers will favour products that offer the most quality, performance, and features. The organisation also making continuous product improvements. (adsbygoogle = window.adsbygoogle || []).push({}); Selling Concept Consumers will not buy enough of the organisation’s products unless the organisation undertakes a large-scale selling and promotion effort. Marketing Concept The marketing concept is...

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What Is Marketing?

Marketing defined: Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return. (adsbygoogle = window.adsbygoogle || []).push({}); Marketing is managing profitable customer relationships Attracting new customers Retaining and growing current customers  Understanding the Marketplace and Customer Needs Customer Needs, Wants and Demands Needs are states of deprivation: Physical—food, clothing, warmth, safety Social—belonging and affection (adsbygoogle = window.adsbygoogle || []).push({}); Individual—knowledge and self-expression Wants...

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