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    Pricing Strategy PPT 2

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    Pricing Strategy PPT 2

    Uploaded by

    jhaymarksuarnaba239
    4 views25 pages

    Original Title

    Pricing Strategy Ppt 2

    Copyright

    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    Download as pptx, pdf, or txt
    4 views25 pages

    Pricing Strategy PPT 2

    Uploaded by

    jhaymarksuarnaba239

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 25

    Marketing Mix

    BY: DR. ROXANNE


    VELASQUEZ
    Introductio
    n
    DEFINITION:
    • Promotion is communication with actual and
    potential buyers

    OBJECTIVE:
    • To convince target market of the product’s
    differential advantage

    NECESSARY PREREQUISITE:
    • Ought be guided by a promotional strategy: a
    plan for the optimal use of the promotional
    mix
    Elements of the Promotional
    Mix
    Advertising

    Ingredients Publicity
    Ingredients
    of
    of the
    the
    Promotion
    Promotion
    Mix
    Mix Personal Selling

    Sales Promotion
    The Effects (outcomes) of Advertising
    • Advertising influences:
    – market share
    – the consumers’ behaviour
    – brand loyalty
    – perceptions of attributes
    Major Types of Advertising

    Corporate Image

    Institutional
    Advertising
    Advocacy Advertising
    Types
    Types
    of
    of
    Advertising
    Advertising
    Pioneering

    Product Competitive
    Advertising

    Comparative
    Major Types of Advertising (cont)
    • Institutional advertising
    – to establish, change or maintain the firm’s
    identity - not an attempt to sell anything
    • Product advertising
    – pioneering advertising
    » stimulate demand for a new product: primary
    demand
    – competitive advertising
    » attempts to increase sales: brand insistence
    – comparative advertising
    » directly or indirectly compares two brands
    Setting Advertising Objectives

    Introduce New Products

    Position Brands

    Obtain Outlets

    Ongoing Contact

    Strategy
    Support Sales Force
    Decisions
    in Setting Get Immediate Action
    Advertising
    Objectives Maintain Relationships
    Choosing Media

    Television Yellow Pages

    Newspapers Magazine
    Major Kinds
    of Media
    Direct Mail Outdoor

    Radio Internet
    Advertising on the Internet

    Many Forms

    ??????
    ??????
    Seek Direct Response

    ?????? More Exposure

    ?????? Better Targeting

    ?????? Context Ads/Pointcasting

    Pay for Results


    Public Relations and
    Publicity
    • Public relations: shape the public’s
    perceptions of and attitudes towards the
    firm
    • Communicates with stakeholders in
    manners other than advertising
    • Publicity: non-paid for media exposure for
    the firm: both positive and negative
    Personal
    Selling
    • Two people in a purchasing situation
    trying to influence each other
    • Each part has its own objectives
    – buyer wants to minimise costs or buy the best
    quality
    – seller wants to maximise price, sales and
    profits
    • Often a well-prepared presentation
    • Modern approach is relationship selling
    Steps in the Personal Selling Process
    Prospect for Set effort Evaluate needs of
    new customer priorities established customers

    Select target customer

    Feedback
    Preplan sales call and presentation(s)

    Make sales presentation

    Close sale

    Follow up to Follow up to
    establish maintain
    Sales
    Promotion
    • All marketing activities other than
    advertising, personal selling and public
    relations, that stimulates sales and dealer
    effectiveness
    • Short-term, immediate stimulation of
    demand
    • Can be aimed at consumers,
    intermediaries or employees
    • Examples: free samples, coupons etc.
    Sales Promotion Activities

    Aimed at final Aimed at middlemen Aimed at company’s


    consumers or users own sales force
    Contests Price deals Contests
    Coupons Promotion allowances Bonuses
    Aisle displays Sales contests Meetings
    Samples Calendars Portfolios
    Trade shows Gifts Displays
    Point-of-purchase Trade Shows Sales aids
    materials Meetings Training materials
    Banners and Catalogs
    streamers Merchandising aids
    Trading stamps
    Sponsored events
    The Communication Process

    Noise

    Sender Encoding Channel Decoding Receiver

    Channel
    Integrated Marketing
    Communications
    • Ideally communication from each
    promotional element ought to be
    integrated
    • The message reaching the consumer must
    be consistent irrespective of the medium
    used
    • Organisational arrangements must ensure
    IMC
    • The responsibility of the marketing
    communications manager
    Goals and Tasks of Promotion

    Informing Reminding

    Target
    Audience

    Persuading
    AIDA and the Hierarchy of Effects
    Purchase
    Conviction

    Preference

    Liking

    Knowledge

    Awareness

    Attention Interest Desire Action


    Cognitive Affective Conative
    When Elements of Promotion Are Most Useful

    Advertising
    Effectiveness

    Personal
    selling

    Sales
    promotion

    Public
    relations

    Awareness Knowledge Liking Preference Conviction Purchase

    Very effective
    Somewhat effective
    Not effective
    Factors that Affect the Promotion Mix
    Nature of the Product

    Stage in the Product


    Life Cycle

    Target Market Characteristics

    Type of Buying Decision

    Available Funds
    $$$
    Push–and–Pull Strategies
    Creating a Promotion
    Plan
    Analyse the Marketplace

    Identify Target Market

    Set Promotion Objectives

    Develop Promotion Budget

    Choose Promotion Mix


    Criteria for Setting Promotion Objectives

    Promotion objectives should:

    be measurable, concrete

    be based on sound research, with a


    well-defined target audience

    be realistic

    reinforce the overall marketing plan and


    relate to specific marketing objectives
    Examples of Promotion
    Objectives
    Informative (Awareness) Objective
    To increase the top-of-mind awareness level for Black Cat
    peanut butter from 16 percent to 24 percent

    Persuasion (Attitudinal) Objective


    To increase the percentage of parents who feel that Black Cat
    peanut butter is the best peanut butter for their children from
    22 percent to 35 percent

    Reminder Objective
    To remind consumers that Black Cat peanut butter is the
    creamiest peanut butter and is available at their nearest grocery
    and convenience stores
    Techniques for Setting Promotion Budgets

    • Arbitrary Allocation
    • All - You - Can - Afford
    • Competitive Parity
    • Percent of Sales
    • Market Share
    • Objective and Task
    NEXT TOPICS>>>>
    Group 1 – Pricing Strategies
    Group 2- New Product Pricing Strategies
    Group 3- Product Mix Pricing Strategies
    Group 4- Price Adjustment Strategies
    Group 5- Pricing Under Market Various Market
    Condition and Public Policy and Marketing
    Group 6- Determining Demand – Customer Perception
    of Price
    Group 7- Price Changes
    Group 8- Identifying Price Constraints and Legality of
    Pricing Policies

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