Angela Bianca Joy Brazil

Mini - Sir Meniano

Price is an amount of money
expected from your customer
to pay in exchange for your
product/service.
Marketing experts would say that Price or
Pricing is the most important P among the
Marketing Mix
Each of these P’s has been an important way to
differentiate your company from the
competition
Pricing and Promotion share equal
importance in the marketing mix. But the
reality is that Pricing stands far above
Promotion because Pricing controls
Promotion.
The price of a product online
determines how much profit a
product will make, a portion
of which can be used for
marketing.
When you are priced lower than
your competitors, the chance
customers will click on your ad
and buy your product increases.
1. All prices must cover costs and profits.
2. The most effective way to lower prices is to lower costs.
3. Review prices frequently to assure that they reflect the
dynamics of cost, market demand, response to the
competition, and profit objectives.
4. Prices must be established to assure sales.
 Before setting a price for your product, you have to know the costs of running
your business. To determine how much will it costs to run your business,
includes property and/or equipment leases, loan (if any), inventory, utilities,
financing costs, and salaries/wages/commissions. Don't forget to add the costs
of markdowns, shortages, /discounts, damaged merchandise, employee
discounts, cost of goods sold, and desired profits to your list of operating
expenses. Most important is to add profit in your calculation of costs. Treat
profit as a fixed cost, like a loan payment or payroll, since none of us is in
business to break even (equal).
 MODULE 12
The Most Common Pricing Strategies (PART 1)
PENETRATION PRICING OR
PRICING TO GAIN MARKET
SHARE
This strategy is used to set up their customer
base in a particular market, for a limited
time. Similarly, some businesses keep their
product price low as their introductory offer,
which is a way of introducing themselves in
the market.
ECONOMY PRICING
OR NO FRILL LOW
PRICE

This pricing strategy is considered as no frill

low prices where the promotion and the
marketing cost of a product are kept to a
minimum.
No-frills businesses operate on the principle
that by removing luxurious additions,
customers may be offered lower prices.
Economy pricing is set for a certain time
where the company does not spend more
on promoting the product and service.
PSYCHOLOGICAL
PRICING STRATEGIES
Psychological pricing Strategies is
an approach of gathering the
consumer’s emotional response
instead of his rational respond.
The price of the product is almost
P100.00, but buying it at P99.00
makes the customer feel that the
product is not very expensive.
 PRICING STRATEGIES
OF PRODUCT LINE
Product line pricing is defined as pricing a single
product or service and pricing both as one.
For example, if you buy a pack of chips and
chocolate separately, you end up paying a
separate price for each product. However, if you
buy a combo pack of the two, you end up paying
comparatively lesser for both, and if you buy a
combo of both in a higher quantity, you end up
paying even lesser (discounts for bulk purchase).
PRICING OPTIONAL
PRODUCTS
It is a general approach that if a
business decreases the price of a
product or a service, it increases
its price of its other available
optional services.
Let’s take again a budget airline as
an example. The prices of their
airfare may be lower compared to
another fleet, however, they will
charge you extra for “more
convenience” such as window
seats, extra legroom, insurances,
and others alike
 Module 13
The Most Common Pricing Strategies (PART 2).
 Pricing of
Captive Products
Captive products refer to products
that complement other products
offered by the same
business/company.
Without the other, the main product
is of no use or useless.
The consumer has no other option
but to buy the complementary
products from the same company.
Pricing for
Promotions
This refers to promotional
strategies that include (but not
limited to) discount offers, gift,
money coupons/vouchers, and “buy
one get one free” to promote new
and even existing products. An old
strategy but still one of the most
successful pricing strategies
businesses use.
 Pricing as Per
Geographic Location
This strategy is used for reasons of o the shortage for a
particular product;
scarcity on raw materials used to produce a product;
higher or lower labor cost;
abundance or shortage of resources available in the area;
the rental cost of a store is higher or lower than the other;
the shipping cost of the product is higher (if product is
sourced from a different location); and
the location serves different levels of market/customers
(high-end malls versus small ones).
Value Pricing a
Product
This refers to a reduction in the price
of a product due to external factors
that can affect its sales such as but
not limited to competition and/or
decrease in manpower.
Pricing for
Premium Products
A high price for a premium or special
products is an extensive competitive
advantage to the manufacturer because
the high price of these products assures
customers that the product they are buying
and paying for is of high/best quality.
The higher the cost the more will be the
value of the product amongst that class of
audience.
MODULE 14
Marketing Analysis (Place)
 PLACE
the process of moving products from the producer to the user
Choosing the right location for your business should be focused on reaching
the right target customers at the right time. It should concentrate on where
the business is/will be located, where the target customers are located, how
best to connect the location and the customers, how to store the products,
and how to eventually transport them.
DISTRIBUTION CHANNELS
A distribution channel can be defined as the
activities and processes required to move a
product from the producer to the consumers.
Example: physical stores or shops, people
(sellers, resellers, network), online stores, and
the social media pages
HERE ARE THE FACTORS THAT YOU SHOULD CONSIDER IN
CHOOSING THE RIGHT PLACE OR DISTRIBUTION CHANNEL
FOR YOUR BUSINESS:
1. Style of Operations - Your location should complement your chosen style and image
2. Demographics - who your customers are and their proximity/accessibility to your
location.
3. Foot traffic (crowd) - if your business requires confidentiality, you may not want to be
located in a high-traffic area.
4. Accessibility and Parking - how easy is it for cars to get in and out of your parking lot
and the area is clean.
5. Competition - If the competition in that area is high, look elsewhere.
6. Proximity to other business and services - see if you can benefit from nearby
businesses by the customer traffic they generate and see if there are service-based
businesses in the area that could be of help to you.
7. Image and history of the site - You need to check the image and the history of the
location because you need to confirm whether the problem was with the businesses or
with the location.
8. Ordinances - Find out if any ordinances or zoning restrictions could affect your
business in any way.
9. The building/store infrastructure - Make sure the building or the area you are eyeing
has adequate electrical, air conditioning, and telecommunications service
10. Utilities and other costs - ? Consider all your location-related expenses, and factor
them into your decisions.
 Module 15
Marketing Analysis
Creative Portfolio
(Promotion)
 PROMOTING
is the part of marketing where you advertise and market your
product, also known as a promotional strategy. Through it, you let
potential customers know what you are selling.
What are the different Promotional Strategies?

CONTESTS
The idea is to promote your brand and put
your logo and name in front of the public
rather than doing a hard-sell campaign.
People like to win prizes. Sponsoring contests
can also bring attention to your product
without too much activity from the business.
 SOCIAL MEDIA
Social media pages such as Facebook, Google,
and Instagram offer businesses a way to
promote products and services in a more
relaxed and convenient environment. This is
direct marketing at its best
 MAIL ORDER
MARKETING
Mail-order business, also called direct
mail marketing, method of
merchandising in which the seller’s
offer is made through mass mailing
(email most of the time) of a circular
or catalog in which the buyer places an
order by mail.
 PRODUCT GIVEAWAYS
AND SAMPLES
Product giveaways and sample products are methods
used often by businesses to introduce new food and
household products. Some businesses would sponsor
in-store promotions, giving away product samples to
attract the buying public to try the new products.
 POINT-OF-SALE AND
END-CAP MARKETING
Point-of-sale is a way to promote
new products or products a store While the end cap, which sits at
needs to move. These items are the end of aisles in grocery stores,
placed near the checkout in the features products a store wants to
store and are often purchased by promote or move quickly
consumers on impulse as they wait
to be checked out.
 POINT-OF-SALE AND
END-CAP MARKETING

POINT-OF-SALE END-CAP
CUSTOMER REFERRAL
INCENTIVE PROGRAM
The customer referral incentive
program is a way to encourage
current customers to refer new
customers to your store.
This is a promotional strategy
that utilizes your customer as
your sales force.
CAUSES AND CHARITY

Promoting your products while

supporting a cause can be an
effective promotional strategy.
Giving customers a sense of being
a part of charitable works creates
a win/win situation
 BRANDED
PROMOTIONAL GIFTS
Giving away functional branded gifts can be
a more effective promotional move than
handing out simple business cards. Put your
business card on a magnet, ink pen, or key
chain. These are gifts you can give your
customers that they may use, which keeps
your business on sight all the time.
 CUSTOMER APPRECIATION
EVENTS
An in-store customer appreciation event with free
refreshments and prizes will draw customers into
the store. Pizza, hot dogs and soda are inexpensive
food items that can be used to make the event more
attractive.
Setting up product displays before the launch of
the event will ensure the products you want to
promote are highly visible when the customers
arrive.
 AFTER-SALE
CUSTOMER SURVEYS
This serves the dual purpose of promoting your
business as one that cares what the customer thinks,
and one that is always striving to provide the best
service and product.
Contacting customers by telephone or through e-mail
after a sale is a promotional strategy that puts
customer satisfaction first while looking at a
promotional opportunity
Module 16
Marketing Analysis (Packaging)
Here are some examples to
guide you on the various
opportunities behind the
concept of packaging for
service-oriented
businesses.
Packaging
Packaging is the outer appearance of the product and
the first thing a potential customer will see.
The package of a product serves multiple practical
purposes as well, such as but not limited to protection,
information transmission, convenience, and security.
Brand
The name of the
business/product/service. This
serves as the foundation for your
marketing system. The brand or
name should “ring a bell” or catchy
enough for your customer’s
attention.
Methodology and
point of view
This refers to your “story” that you want to tell
your customers. When providing a service, you
must be able to both demonstrate the tangible
deliverables and orient the client as to where
they have been, where they are now, and where
they are going in the process of availing the
service.
The point of view refers to contents for
awareness, education, trust-building, conversion
and follow-up.
Pricing
This is about selling a result, which is another way of
saying it no longer matters how long it takes for a
customer to get a result, it is based on the elements of
perceived value or importance of your service to them.
A sale of a service is like a statement, “here’s what I’m
going to do, here’s what you’re going to do, here are
the results we can expect and, by the way, here’s what
it costs.”
 Here is a set of important
roles packaging plays in a
business or for the product.
Information and
Self-service
One of the first role that packaging plays,
especially in new products, is the information
provided on the packaging.
This information can tell the consumer how
to cook the food product, it can tell them
how to use a technology product, or it tells
about the procedures and precautions
necessary during the usage of the product.
Information as
a “safeguard”
Packaging information can also be used as a
means to safeguard or secure the company.
In case someone sues the company for the
information not provided, and that
information is already printed on the packet,
then the company can raise its hands and
say that the information was already
provided.
Utility

Aside from being attractive and for promotion

purposes, another function of packaging is to
safeguard or secure the product.
Protection of the product, carrying it safely,
not allowing damage to the product,
transportation of the product are all
examples of the utility and the role that
packaging plays.
Design of
packaging
In many cases, the brand recognition and the
brand image relies on the packaging of the
product.
Locally, children even at a very young age
would love to have a piece of Mc Donald’s
Happy Meal because of its very cute box.
Brand
recognition
Brand recognition is exactly what it sounds like:
consumers can recognize one brand over other
brands.
In other words, it's the ability of consumers to
identify your product by its attributes and
design elements. Design elements include
such things as shape, color, illustrations, and
graphics.
Differentiation

A key role of packaging is differentiation. Your

brand and the packaging color become clear in
your mind that “this is what you want”.
Let’s take detergent soaps as samples. They
are all detergent soaps which serve the same
purpose of being a soap used to wash
clothes. However, through packaging,
consumers can spot the difference and
identify which one they need.
Promotion

The packaging is very important in the

promotion of a product.
Good packaging and interesting aesthetics
will attract the attention of potential
customers.
Most of the time, the packaging is used to
promote new products, products a store
wants to move quickly, or for bundled selling
like buy-1-take-1 promotions.
Decision-Making
Process of
customers
The packaging is the final salesman. You spend a lot on
advertising, branding, marketing, and sales, and you got
the customer inside the showroom, and in front of a line
of products.
Many times, the decision taken by the consumer is
influenced a lot by the packaging of the product. Many
times, you will find that books pay a lot of attention to
the cover photo.
This is because authors understand the philosophy that
many people buy a book based on its cover. As a result,
it directly influences the consumer’s decision-making.