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How do concept such as psychological pricing and reference pricing apply to the marketing strategy?
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Answer Supply and Demand, Want and Need, and the Cost to Produce. (cost to make)(demand, who will buy it)(want, who needs it)(supply amount you could previde) … ------------------------------------------------ I did GCSE's last year, and while i was revising wrote down some notes on pricing strategies and all the different ones.. this could be useufl to you.. # Cost - Plus Pricing - The company will work out how much it costs them to make of buy in a product then add on an amount for the profit. # Our Base Pricing - Some companies offer services and they need to set prices for those services. It is normal for service companies to set a price per-hour. E.g. Solicitors, plumbers, gardeners, electricians. # Skimming - Some times when a product is launched, a high price is set, but as more customers buy it, the price may need to be lowered, to maintain sales, e.g. PSP's, DVD's, games, game consoles etc. # Penetrating Pricing - A low price, maybe used at the start to attract customers to an introductory price. As people become more familiar with the product the price is raised to a normal level # Lost Leaders - Shops often set low prices on certain products to attract customers in, they hope that when customers are in they will buy other normal price products, e.g. Iceland's Roast Dinner, Special Offers. # Destroyer Pricing - This happens when a large company deliberately sets very low prices hoping the competition cannot match them. They hope to put the competition out of business. A* Extra A products price has strong connections with its point in the life cycle. In the introduction phase, a skimming or a penetration price might be used; in the maturity phase, promotional and discount prices may be used; and in the decline phase, sale, or mark-down prices may be used to get rid of unwanted stock. I got all this from my books.. Matt
There are several definitions of market price depending on on usage. It can be the price of a commodity or share on the stock market . It can also be the best guess of a ma…rketing agent as to what price could be obtained for a product or service. In this case the initial price may change due to demand or lack thereof.
In marketing terms it is a strategic approach to the pricing of products in a competitive environment. The pricing is done not by the economics of the product but more b…y the appeal that can be made from it's price. The product is given value through it's price rather than it's function.
Answer . The price of a product or service influences how consumers (i.e., potential customers) perceive it. Consumers frequently perceive higher-priced items to be higher… in quality, though that's clearly not always true. "Luxury" items tend to have a higher price-point. "Economy" items, on the other hand, are typically lower-priced items. From a marketing perspective, pricing is a key component of brand positioning. How do you want your brand to be positioned in the marketplace versus competing products/brands?
One psychological pricing strategy used is pricing something high, so that consumers associate it with prestige. Many retailers do this with cars.
In starting with a marketing pentration pricing strategy what assumptions can be made about marketing?
When a company starts with a marketing penetration pricing strategy you assume that people want the product you are offering. Another assumptions you have is that your pri…cing strategy is priced better than your competition.
You can market your business online through Search Engine Optimization, Search Engine Marketing, Social Media Marketing, Affiliate marketing Etc.... Search Engine Optimizati…on (SEO) Search Engine Optimization is nothing but optimizing your website to make it easy accessible by search engines and rank higher in search results for the potential keywords. Search Engine Marketing (SEM) It is also called as Paid Search - Paid Advertising - Pay Per Click. You can advertise your business and products in search engines for the keywords which directly brings you qualified traffic to make sales, brand exposure and etc as per your requirement. Social Media Marketing It is a process of spreading the contents to social mediums and online communities.This can be anything from creating compelling content that gets bookmarked and even hits digg's homepage to spreading a viral video by putting it on YouTube and other social media websites. For example, participating in online communities where your customers hang out would be an active role of SMM. Affiliate Marketing: Affiliate marketing is an advertising system in which the affiliate merchant rewards the affiliate partner for every sale and/or visitor. As Internet Marketing becomes essential need for each and every online business now, there are lot of marketing firms grown up globally. There is really lot of evaluation needed to find a good firms to outsource the online marketing campaigns. Following are official tips from Google to find the right marketing company. Google Tips to find Right SEO Company. http://www.google.com/support/webmasters Google Tips to verify right SEM company https://adwords.google.com Below is an example link of an Google Certified Professional Of an Internet Marketing Company. https://adwords.google.com
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When computer company initially charged a low price and then raise price after gaining market share which pricing strategy is getting used?
A marketing strategy is the planning and deployment methods used to obtain customers for an organization. The marketing strategy involves segmenting and targeting which market…s will be most beneficial to an organization and then marketing to those markets. The marketing strategy involves the planning of company positioning as well. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution (4 Ps) of ideas, goods and services to create exchanges (with customers) that satisfy individual and organizational objectives. Exchange and Utility Ø The criteria needed for an exchange to occur: Ø Must have something of value to exchange Ø Need to be able to communicate Ø Must be able to exchange (under 21 drinking) Ø Must want to exchange Ø At least 2 people needed for an exchange to occur Ø The exchange process creates Utility. Utility is the satisfaction, value, or usefulness a user receives from a good or a service. When you purchase an automobile, you give up less (in $s) than the value of the car (to you)...the ability to get you from A to B, safely, in a timely manner etc. Create a Marketing Mix (4ps): Product... Border Lights, a new menu of "light foods" Price..... Value Pricing as with their other menu items Promotion... Various media and methods, a commercial that appeared during the 1995 Superbowl to announce the arrival. Distribution... Taco Bell has increased its points of access (where you can by its products) by a factor of 4 over the last couple of years...including gas stations etc. When did marketing first evolve? Ø Division of labor. Ø Specialization. Led to the Exchange of goods etc. Ø Exchange is key to marketing, without an exchange, there is no need to market. Importance of the marketing concept. Ø According to the Customer Service Institute, it costs as much as five times as much to acquire a new customer than it does to service an existing one. Ø Customers tell twice as many people about a bad experience over a good one.
They are referred to as price takers.
Penetration pricing and coupons
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The strategies for a marketing is to find out the target people and accordingly decide the medium through which you will like to promote the product range.