Relatively lower prices than its competitors o Rugged negotiation with

Relatively lower prices than its competitors o rugged

This preview shows page 21 - 33 out of 37 pages.

Relatively lower prices than its competitors o Rugged negotiation with suppliers for private label products o Locates its stores in low-rent, out-of-the-way locations o Spends little on advertising (word of mouth) 05/14/18 22
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Considerations in Setting Price 05/14/18 23
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Pricing: “The Three Cs” Competition Customers Costs Objectively assess fit
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Pricing to Customers What will provide you “success”? First define it : Strategy. Lots of options: Higher prices High List Price and Every Day Low Price (EDLP) “Going Rate” pricing Lower entry pricing to grab “mind share” and trial Lower price on base and sell more profitable “consumables” (software, service, “razor blades”) Tier and bundle from limited to “end to end” benefits Pay per use Subscriptions Auctions
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Drive Awareness->Interest-> Trial->Purchase-> Loyalty Most expensive aspect of the marketing plan Reach smaller consumer segments in interactive ways. Traditional mass media, online, mobile, social media o Leverage a fluid mix of paid, owned, earned, and shared channels
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Promotional Mix Integrated blend of communication tools Used by companies to: o Engage consumers o Communicate customer value o Build customer relationships Major promotion tools: o Advertising o Sales promotion: Trade and Consumer o Personal selling and public relations o Direct and digital marketing communications o “Push” and “Pull”
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Integrated Marketing Communications
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Push vs. Pull Promotion Strategy
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Placement: Meeting and Supporting Customers Supply Chain = Value Delivery Network Planning and management of sourcing, procurement, conversion, & logistics so that supply = demand. Upstream Partners : Supply raw materials, components, parts, information, finances, and expertise needed to create a product or service. Downstream Partners : Serve as distribution channels that link the firm and its customers.
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Channel Management Flow of product, information, & support from producer to consumer Sales & Support Effective channels: o Enhance customer satisfaction o Extend reach, access, and capability o Negate costs Channels should reflect: o Customer behavior and needs o Competitors’ channels o Product characteristics and service requirements
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Functions Performed by Channel Partners
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