Marketing Mix Slides.pdf - Marketing(MM2 2018\/19 Session 6 Vincent Mak Reader(Associate Professor in Marketing Decision Sciences CJBS

Marketing Mix Slides.pdf - Marketing(MM2 2018/19 Session 6...

This preview shows page 1 - 12 out of 33 pages.

Marketing (MM2, 2018/19): Session 6 Vincent Mak Reader (Associate Professor) in Marketing & Decision Sciences, CJBS [email protected]
Image of page 1
Framework of Marketing Strategy Situation Analysis Targeting Positioning Marketing Mix Execution -Product -Price -Place -Promotion -Customer -Competition -Company -Context -Collaborator 5Cs 4Ps Sessions 6-8
Image of page 2
Today’s Agenda Marketing Mix (Part 1) I. Price Steps in price setting/pricing strategies Psychology of pricing II. Promotion Developing promotion strategies/communication channels Integrated marketing communications Response hierarchy models Message content
Image of page 3
PRICE
Image of page 4
“Pricing is the moment of truth – all of marketing strategy comes to focus on the pricing decision” - Prof. Raymond Corey, Harvard Business School
Image of page 5
Steps in Setting Price Select pricing objective Analyse demand Estimate costs Analyse competitors Select pricing strategy Select final price
Image of page 6
Pricing Objectives Often tactical (could also be part of a high-level marketing strategy) Gain market share Short-term profitability Respond to competition Product positioning Entry deterrence Part of an exit strategy Acquire experience
Image of page 7
Price Elasticity But when might demand increase with price?
Image of page 8
Price sensitivity: What make customers less price sensitive? Unique value Low awareness/Lack of substitutes Difficult comparison Total expenditure is large relative to price End benefit is high Cost sharing with other parties High switching cost Consumers believe price signals quality Low inventory-holding capabilities Fairness effect (Reference price)
Image of page 9
Cost and Pricing Volume effect Experience curve effect Break-even analysis: “With these fixed & marginal costs and this price, what’re the sales we need to break even?” An Experience Curve
Image of page 10
Competition and Pricing Examine competitors’: Cost information Positioning Past strategies
Image of page 11
Image of page 12

You've reached the end of your free preview.

Want to read all 33 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture