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FINAL.ppt One

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Mischelle Martis Namrata Somani Nilesh Limaye Nehal Maniar Pooja Parihar Paresh Jadhav Meghna Joshi

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Pricing is an important component of an enterprise's business processes and financial performance. Pricing is the process of determining what a company will receive in exchange for its products.

Manufacturing cost, Market place, Competition, Market condition, Quality of product.

Effective price is achieved after accounting for discounts, promotions, and other incentives.

Maximize long-run and short-run profit Increase sales volume (quantity) Increase monetary sales Increase market share Company growth Discourage new entrants into the industry Match competitors prices Survival Be perceived as fair by customers and potential customers

Create interest and excitement about a product Discourage competitors from cutting prices Use price to make the product visible" Build store traffic Social, ethical, or ideological objectives Get competitive advantage Obtain or maintain the loyalty and enthusiasm of distributors and other sales personnel Enhance the image of the firm, brand, or product

Competition-based pricing EXAMPLE: Best Buy

Marketing Skimming EXAMPLE: Luxury Items - digital TV, MP3 players Market Penetration EXAMPLE: collectors magazines Price Bundling EXAMPLE: Croma, Fast Food Restaurants.

Multi-Unit Pricing EXAMPLE: EDLP EXAMPLE: Wal-Mart, Big Bazzar Odd Pricing EXAMPLE: Rs.399,Rs.199 Single Pricing EXAMPLE: Dollar Shops

Promotional pricing EXAMPLE: Big Bazzar, ebay.com Multi Pricing

Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. Promotion is the communication of information about goods, services, images and/or ideas to influence purchase behavior

Promotion is generally sub-divided into two parts: Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet and Mobile Phones) in which the advertiser pays an advertising agency to place the ad Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows

Goals are stated in specific and measurable terms. Positive word of mouth (WOM) is an important long-term goal. An overall promotion budget is set on the basis of one of these techniques: all you can afford incremental, competitive parity, etc. The promotional mix is outlined, based on the firms budget, the type of retailing involved, the coverage of the media, and the hierarchy of effects. The promotional mix is enacted. Included are decisions involving specific media, promotional timing, message content, sales force composition, particular sales-promotion tools, and the responsibility for coordination. The retailer systematically reviews and adjusts the promotional plan, consistent with its preset goals

To built awareness. To create interest. To provide information. To stimulate demand. To reinforce the brand.

SALES PROMOTION

ADVERTISING

PR/PUBLICITY

PERSONAL SELLING

VISUAL MERCHANDISING

AdvertisingAdvertising is a form of communication used to influence individuals to purchase products or services or support political candidates or ideas. Advertising is bringing a product (or service) to the attention of potential and current customers. Advertising is focused on one particular product or service. Thus, an advertising plan for one product might be very different than that for another product. Advertising is typically done with signs, brochures, commercials, direct mailings or email messages, personal contact, etc.

Modes of AdvertisingTelevision Radio Cinema News Papers Magazines Outdoor Yellopages Carry bags T-shirts Internet Video Games

Importance Of AdvertisingBuilds awareness of products and brands Creates a brand image Provides product and brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces past purchases and brand experiences

Public RelationPublic relations includes ongoing activities to ensure the overall company has a strong public image. Public relations activities include helping the public to understand the company and its products. Often, public relations are conducted through the media, that is, newspapers, television, magazines, etc. Public relations is often considered as one of the primary activities included in promotions.

Public relation can be done through:Media Relations Media Tours Newsletters Special Events Speaking Engagements Sponsorships Employee Relations Community Relations and Philanthropy

A sales promotion can be defined as a paid nonpersonal form of communication, that incentives customers to visit a store and/or purchase merchandise during a specific period.

To stimulate trial purchases. To encourage repeat purchases. To encourage larger purchases. Introduce a new brand/product. Counter competitors strategy.

TYPES OF SALES PROMOTION

Multiple purchase offers, Frequent-user incentives

P-O-P material

Product placements/tie-ins

TYPES OF SALES PROMOTION

Product sampling, demonstrations Coupons, refunds Rebates Contests, games & sweepstakes

Advantages:

Attract customers Short-term sales increase To liquidate slow moving stock Increase turnover

Sales PromotionDisadvantages:Only short-term Hidden costs Confusion Price cutting -Brand image Lack of effectiveness sometimes

Jaldi.com Puzzle Contest Dangdang.com Lucky Time Activity Dangdang.com Membership Card ebay.com, indiaplaza.com - Coupons

Get Lucky & Win..

TATA INDICA XETA

TRIP TO THAILAND AND GOA

Exchange Offers

Exchange Offer

Buy Scratch Win

Customer Loyalty Program (Membership Card). Crowning contest. Kids Painting competition.

CLP involves issuing of membership cards which helps a retailer to retain its customer for a longtime. MAX issues such type of card on purchase of Rs.999.

Crowning contestThis was a contest organized by MAX for kids. Wherein the kids could try MAX clothes, wear a crown and take photographs with cartoons MICKEY and DONALD.

This was a competition organized by MAX for kids. Kids were provided with free drawing materials and allotted an hour to paint a picture of their choice. The winners were given Gift Vouchers worth Rs. 399

Presentation of merchandise to the customer in a visual way. This gives customers a firsthand view of the product

To sell goods To show new uses for products To introduce new goods To build prestige and goodwill To show proper care of merchandise To suggest merchandise combinations

Window display Interior display The trend away from window Point of purchase Display Industrial and Exhibition Visual Merchandising

Too much quantity on display Inadequate Display Confusing Display One product category overshadowing the other Color distortion in the store leading to consumer grievances

Personal selling is paid form of personal advertising, where salespeople assist customers in satisfying their needs through person-to-person exchange of information.

Prospecting Approach Sales Presentation Handling objections Close Post sales follow -up

Direct Marketing is the process by which a firm approaches its customers on one-toone basis and markets its products directly to them.

Mail Order Marketing/Catalogue Marketing Direct Mail Marketing Telemarketing Teleshopping Online Marketing

Thank you