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
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
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
Promotional pricing EXAMPLE: Big Bazzar, ebay.com Multi
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
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,
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
To built awareness. To create interest. To provide information.
To stimulate demand. To reinforce the brand.
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
Modes of AdvertisingTelevision Radio Cinema News Papers
Magazines Outdoor Yellopages Carry bags T-shirts Internet Video
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
TYPES OF SALES PROMOTION
Multiple purchase offers, Frequent-user incentives
TYPES OF SALES PROMOTION
Product sampling, demonstrations Coupons, refunds Rebates
Contests, games & sweepstakes
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
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
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
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
Mail Order Marketing/Catalogue Marketing Direct Mail Marketing
Telemarketing Teleshopping Online Marketing