It is therefore important to give it due importance and allow in depth analyses to become the basic of pricing decisions. Sometimes, the best a company may want to do is to cover costs and to remain in the market. Define the Right Pricing Any pricing decisions for a product need to be made through proper research, analysis and an eye on strategic objectives for the organization and the product.
Used wisely, this can be a useful method of increasing sales but the company must avoid the temptation to offer these special prices too often. A market plan can consist of elements such as, target market, consumer interests, and resources; it must be specific and key to that group of consumers as that is the speciality of niche marketing.
Simplistically, price is the value measured in money term in the part of the transaction between two parties where the buyer has to give something up the price to gain something offered by the other party or the seller.
If there is a shortage of a necessary good, or a special situation such as a natural disaster, then this opportunistic pricing may be very unethical. In contrast, those portraying low self-esteem were easily influenced.
The marketing mix of the four Ps functions as a guide to help the marketing manager successfully develop a strategy for promoting products and services to customers.
If they look in a store, what kind?
As cultures vary with countries, different approaches to promotion are adopted. Is the promotional material in keeping with the distribution channels proposed? Psychographic — Attitudes, values, religion, and lifestyles. To cater to the unique challenges of services, the 4P model has been supplemented with 3 additional categories which are: These four variables are interdependent and need to be planned in conjunction with one another to ensure that the action plans within all four are complimentary and aligned.
This can be either nationally, regionally or locally and was said to be the first kind of segmentation used practically. Internal marketers follow three basic product strategies namely, standardization, adaptation and innovation.
This means that the price of an item can fluctuate dramatically.
Behavioural Behavioural segmentation is the division of the market based on how individuals react or respond to a product. Who is the customer? Lower income and higher income consumers will be quite different in product selection, leisure time arrangement, social communication and communication and so on.
Start by identifying the product or service that you want to analyze. Differentiated marketing also requires a lot time and energy as it takes time to come up with ideas and presentation to market the many different messages, it also requires a lot of resources to use this method.
Now go through and answer the 4Ps questions — as defined in detail above. This understanding will ensure that the product offering is relevant and targeted. A company may want to use price to signal high quality and establish itself as the quality leader. Price, is a reference to the sacrifices made by a consumer to acquire a product and may include both monetary and psychological costs such as the combination of the ticket price, payment methods and other associated acquisition costs.
Another objective may be to increase the profit margin for each unit and not focus on the total number of units sold. Some of these grey areas to watch out for are: Local economic conditions such as per capita income and GNP are the basic considerations in setting the price level.
For example, a fan of a Swiss knife, they will keep telling their friends and neighbors the benefits of this knife, their frequency of use. What if you drop your price by 5 percent? A target market group will be identified based on reactions to the product itself, the price point given, the promotion or advertising methods for the product and where it is sold, or its placement.
However, a product has to be redesigned entirely to meet the needs of the population. The extraordinary vitality in the occupation or business and get higher income or wealth.
Marketing mix 4 Ps [ edit ] The 4Ps, also widely known as the marketing mix or occasionally as the marketing program, is a framework commonly used in marketing that covers four activities that make up the responsibilities of a marketing department or the marketing function.
When international marketers operate within an economic community, common market, standardization of prices is comparatively easy. These are meant to generate interest in the product or make use of a special occasion or event. In the example used, a segment categorised by how much money a consumer is willing to spend on a product could be defined by certain inclinations when shopping.
Here are some questions that will help you understand and define each of the four elements: True Friends, Butterflies, Barnacles and Strangers. In other words, if a manufacturer identifies a potential new market segment, it must determine a means to advertise to that market.Marketing Mid Term Chapter Valarie King - Belmont University.
The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets. Unless one market segment responds to a marketing mix differently from other.
The key elements of any successful marketing plan include the concepts of product, price, place and promotion, also known as the four Ps of marketing. The marketing mix of the four Ps functions as. Different. A market segment is defined as having a different response to the marketing mix elements, also known as the four P's.
A target market group will be identified based on reactions to the. It is vital to keep an eye on changing trends and requirements, within the company as well as in the market to ensure that the elements in marketing mix stays relevant and updated.
Role of Marketing. The marketing mix helps you define the marketing elements for successfully positioning your market offer. One of the best known models is the 4Ps of Marketing, which helps you define your marketing options in terms of product, place, price, and promotion.
Elements of Marketing mix decision When you are in the process of selecting the target markets, the marketing mix decisions must be evaluated. Basically, the elements for market mix decisions are the same for domestic marketing and international marketing.Download