Nama : Fausta Emris

Nim : 222140048

Kelas : IT A.2

PRICE

Price is the amount of money charged for a product or service, or the sum of the values
that consumers exchange for the benefits of having or using the product or service. Pricing is an
important element of marketing mix.

1. Internal Factors Affect Pricing Decisions

Those internal factors affect the pricing consist:

a. Cost. It is the base for the price that can be charged for products and

services.

b. Marketing mix strategy. price is important marketing mix tool that helps to

achieve the marketing objectives.

c. Marketing objectives of your company like your target market and

positioning strategies

d .Product Life Cycle. Different stages of product life cycle affect the pricing

decisions

e. Image of the Firm. Another factor affects the pricing decision is the image.

Different Pricing Strategies

1. Penetration Pricing.

When companies use penetration pricing strategies, the focus is to gain market
share.

2. Premium Pricing.

When a company introduces a new product with a competitive advantage,

it uses premium pricing strategy.

3. Economy Pricing.
 Companies use economy pricing to target price-conscious customers. Mostly it is
used by retailers and food suppliers.

4. Price Skimming.

This pricing strategy help business to increase their sales when introducing new
products and services.. These prices gradually decreasing as competitors introduce the
same goods in the market.

5. Psychological Pricing.

Marketers use psychological pricing that influences the buyers to buy products
and services based on their emotions rather than logic sense. For example, if a company
set the price of a book at $ 99 it is more attractive than at $ 100. Even though $ 1
difference is very small, but consumer perceives $99 as cheaper and attractive.

6. Bundle Pricing.

. Bundling strategy is a smart way to move those unsold items taking up space.

PROMOTION

A successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. An organisation's promotional mix strategy can
consist of many things. The table below takes you

through some of the methods.

1. Identifying these people is an important part of your market research.

The marketing image that you’re trying to project must match the

advertisement’s message.

a. Advertising

It’s a key promotional strategy and can be done through the following:

 Radio

Relatively inexpensive yet very effective, radio advertisement is a great way to reach
local customers and inform them about your business and products. The best day to run a radio
ad is from

Wednesday to Sunday.

 Television
 If you want your advertisement to reach customers in regional or national levels,
television is the way to go, although it can be more costly than the other options.

 Print

Print advertisement can be distributed via direct mail or printed materials which include
newspapers, flyers, and trade and consumer magazines.

 Electronic

You can also advertise electronically through your company website and provide
important and pertinent information to clients and customers.

b. Public Relations or PR

Public relations is usually focused on building a favorable image of your business.

You can do this by doing something good for the neighborhood and the community like
holding an open house or being involved in community activities.

c. Personal Selling

These salespersons play an important part in building customer relationships through

tailored communication.