Mischelle Martis 19 Namrata Somani 20 Nilesh Limaye 21 Nehal Maniar 22 Pooja Parihar 23 Paresh Jadhav 24 Meghna Joshi 18
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 SkimmingEXAMPLE: Luxury Items - digital TV, MP3 players
Market PenetrationEXAMPLE: collectors magazines
Price BundlingEXAMPLE: Croma, Fast Food Restaurants.
Multi-Unit PricingEXAMPLE:
EDLPEXAMPLE: Wal-Mart, Big Bazzar
Odd PricingEXAMPLE: Rs.399,Rs.199
Single PricingEXAMPLE: Dollar Shops
Promotional pricingEXAMPLE: 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 firm’s 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.
Advertising Advertising 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 e-mail messages, personal contact, etc.
Television
Radio
Cinema
News Papers
Magazines
Outdoor
Yellopages
Carry bags
T-shirts
Internet
Video Games
Modes of Advertising
Importance Of Advertising
Builds 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 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
Media Relations
Media Tours
Newsletters
Special Events
Speaking Engagements
Sponsorships
Employee Relations
Community Relations and
Philanthropy
Public relation can be done through:
A sales promotion can be defined as a paid non-personal 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 competitor’s strategy.
Multiple purchase offers,Frequent-user incentives
P-O-P material
Product placements/tie-ins
TYPES OF SALES PROMOTION
Rebates
Contests, games & sweepstakes
Product sampling, demonstrations
Coupons, refunds
TYPES OF SALES PROMOTION
Attract customers
Short-term sales increase
To liquidate slow moving stock
Increase turnover
Advantages:
Only short-term
Hidden costs
Confusion
Price cutting -Brand image
Lack of effectiveness sometimes
Disadvantages:
Sales Promotion
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 Offer
Exchange Offers
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.
This 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.
Crowning contest
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-
to-one basis and markets its products directly to them.
Mail Order Marketing/Catalogue Marketing
Direct Mail Marketing
Telemarketing
Teleshopping
Online Marketing
Thank you