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    This document provides information about pricing and promotion strategies for branding products. It discusses several methods for setting product prices, including cost-plus pricing where a company bases prices on production costs and adds a percentage for profit, and competition-based pricing where a company sets prices based on what competitors charge for similar products. It also defines what a brand is and explains that branded goods typically cost more than unbranded goods due to factors like quality, service, loyalty and popularity of the brand. The document then discusses brand loyalty, where consumers repeatedly purchase the same brand, and brand image, which is the perception or feelings consumers have about a brand. Finally, it outlines some techniques for branding, such as adding value to products, promotional activities

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    This document provides information about pricing and promotion strategies for branding products. It discusses several methods for setting product prices, including cost-plus pricing where a company bases prices on production costs and adds a percentage for profit, and competition-based pricing where a company sets prices based on what competitors charge for similar products. It also defines what a brand is and explains that branded goods typically cost more than unbranded goods due to factors like quality, service, loyalty and popularity of the brand. The document then discusses brand loyalty, where consumers repeatedly purchase the same brand, and brand image, which is the perception or feelings consumers have about a brand. Finally, it outlines some techniques for branding, such as adding value to products, promotional activities

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    2 views6 pages

    CH 7 Price and Promotion

    Uploaded by

    Mrittika Wadder
    This document provides information about pricing and promotion strategies for branding products. It discusses several methods for setting product prices, including cost-plus pricing where a company bases prices on production costs and adds a percentage for profit, and competition-based pricing where a company sets prices based on what competitors charge for similar products. It also defines what a brand is and explains that branded goods typically cost more than unbranded goods due to factors like quality, service, loyalty and popularity of the brand. The document then discusses brand loyalty, where consumers repeatedly purchase the same brand, and brand image, which is the perception or feelings consumers have about a brand. Finally, it outlines some techniques for branding, such as adding value to products, promotional activities

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    of 6

    HURDCO INTERNATIONAL SCHOOL

    Grade: VIII
    Combined Business Studies

    Topic: Chapter-7
    PRICE AND PROMOTION
    How product prices are set?

    Cost-plus pricing. The companies set the prices of their products by


    judging the costs first.
    When a product is being made there are so many different kinds of costs
    involved in it like purchasing raw materials, labour wages, electricity
    bills, rent, etc.
    For example, if the cost of making a pen is TK 3, the company sells it for
    TK 5, making a profit of TK 2. In this case 67% was added.
    (2/3*100=67%)
    Competition-based pricing: It utilizes competitor’s pricing data for
    similar products to set a price for their own products. Rather than
    focusing on production costs or the value of the item, this pricing method
    relies heavily on market data, (competitors price, to be precise).
    Brand: is a name or logo or a sign or a picture of a product or a firm
    that is easily recognizable by a consumer.

     Prices vary from one product to another.


     Branded goods will have a higher price than non-branded
    goods.
     For example, a Nike t-shirt will cost you more than a
    normal non branded t-shirt. The costs of production do not
    vary as much as price varies but prices are always high for
    a branded product. WHY?
     This is because of the service, quality and loyalty they
    provide to the consumers and also, the popularity of the
    brand.
    Brand Loyalty and Brand Image

     Brand Loyalty: Brand loyalty means repetitive purchase of a


    particular brand by consumers. Meaning, the consumer is
    loyal to the brand.
    For example, you may like to use and buy Apple gadgets,
    Close-up toothpaste, and Honda cars.
     Brand Image: Brand Image means the perception or feelings
    of consumers about a brand.
    For example, you do not see Toyota and Rolls Royce in the
    same way. Do you?
    How to do branding:

     Branding can be done in many ways. Some techniques of branding are discussed below:
     1.Adding Value: Adding value means to put some quality in a product by changing its
    shape, size, color etc. For example, value can be added to a plank of wood by
    transforming into furniture. Creative design, color and quality and attractive show-room
    help people to have better perception for the product as well as of the name of the
    company.
     2.Promotional Activities: Branding can be done through promotional activities.
    Advertisement in newspapers, TV channels, magazines, sponsorship, offers like buy one
    get one free , membership cards, free delivery service, money back guarantee, warranty
    and many more offers are the way of doing promotional activities.
     3. Research and Development: Firms producing electronic goods, medicine, electrical
    equipment and other technical products spend huge amount money for research and
    development for developing existing products and innovating new products. Apple,
    Samsung, General Electric, Siemens, Toyota, GSK have immense brand image due to
    their innovative products.
    Thank you

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