Pricing decision

Price is the only one of the marketing mix tools that the company uses to achieve its marketing
objectives.

Price decisions must be coordinated with product design, distribution, and promotion decisions to form
a consistent and effective marketing programme (cross function teams in price setting).

decisions made for other marketing mix variables may affect pricing decision, e.g. producers using many
resellers who are margins into their prices.

decision to develop a high-quality position will mean that the seller must charge a higher price to cover
higher costs.

Unsought products & Shopping products

consumer products that the consumer does not know about or knows about but does not normally
think of buying.

Most of the innovations are unsought until the consumer becomes aware of them through advertising.

Unsought products need lot of advertising, personal selling and other marketing efforts • Life insurance
• Funeral services • Blood donations

Shopping products

consumer products and services that the customer comparescarefully on suitability, quality,price, and
style

Marketers distribute such products through fewer outlets that are known for the quality of their
merchandize and provide deeper sales support • Furniture • Cars • Appliances

Supplies and services

Supplies include operating supplies (Lubricants,coal, paper, pencils) repair and maintenance items
(Paint, brooms)

Supplies are the convenience products of the industrial field because they are usually purchased with
minimum of efforts or comparison.

Business Services include maintenance and repair services( window cleaning, computer repair) and
business advisory services( Legal, management consulting, advertising.

basic level is the core customer value. It represents what the buyer is really buying

Second level is turning the core benefits into an actual product. It represents the design, brand name,
and packaging that delivers the core benefit to the customer

In the third stage building an augmented product by offering additional consumer services and benefits
Promotional pricing

Promotional pricing is when prices are temporarily priced below list price or cost to increase demand
Loss leaders Special event pricing Cash rebates Low-interest financing Longer warrantees Free
maintenance

Price-Adjustment strategies

Promotional Pricing

Loss-leader pricing: supermarkets and department stores often drop the price on well known brands to
stimulate additional store traffic

Special-event pricing: sellers well establish special pricing in certain seasons to draw in more customers
e.g. Essel World offers a number of attractions and special events to attract more visitors.

Cash rebates: companies offer cash rebates to encourage purchase of the manufacturers products
within a specified time period

Low-interest financing: the company can offer customers lowinterest financing

Franchising

Franchising is an arrangement where franchisor (one party) grants or licenses some rights and
authorities to franchisee (another party). Franchising is a well known marketing strategy for business
expansion.  Omni Channel & Hybrid Channel options Omnichannel refers to the multichannel sales
approach that provides the customer with an integrated shopping experience. The customer can be
shopping online from a desktop or mobile device, via phone, or in a brick-andmortar store, and the
experience will be seamless

A marketing Plan

A marketing Plan is a written document that summarizes what the marketer has learned about the
marketplace and indicates how the firm plans to reach it’s marketing objectives

• It contains tactical guidelines for the marketing programs and financial allocations over the planning
period

• It provides direction and focus for a brand, product or company

It has limited scope than a Business plan

• It is linked to plans of other departments eg production, finance, IT etc

• Marketing plans are becoming more customer and competitor oriented, better reasoned and more
realistic.

• Planning is becoming a continuous process to respond to rapidly changing market conditions

• Smaller businesses create shorter or less formal marketing plans