Fixed vs. Dynamic Pricing for Online Businesses: - Amazon: fixed pricing - eBay: dynamic pricing (auction bidding) can also work other way e.g. consumers set price and business can accept bid > Pricing Tactics - price lining: setting a limited # of prices for certain categories of products e.g. men’s suits for $199, $299, $399, $499 - psychological pricing: takes advntg. of fact that consumers aren’t rational for buying decisions odd-even pricing: based on theory that customers prefer prices that aren’t stated in even dollar amounts e.g. prefer $9.95 over $10 (higher) - discount: price reduction offered as incentive to purchase, stimulate sales LO-3: Identify the important objectives of promotion and discuss the considerations in selecting a promotional mix . promotion: aspect of the marketing mix concerned with the most effective techniques for communicating information about and selling a product > Promotional Strategies
1. push strategy: when a company aggressively pushes its product through wholesalers and retailers, which persuade customers to buy it (often industrial products) 2. pull strategy: when a company appeals directly to customers, who demand the product from retailers, which demand the product from wholesalers (often consumer products) > The Promotional Mix promotional mix: portion of marketing concerned with choosing best combination of advertising, personal selling, sales promotions, and publicity to sell a product The Target Audience: Promotion and the Consumer Decision Process LO-4: Define the role of advertising and describe the key advertising media . advertising: paid, non-personal communication by which an identified sponsor informs an audience about a product Advertising Media: the specific communication device—television, radio, internet, newspapers, direct mail, magazines, billboards—used to carry a firm’s advertising message to potential customers
LO-5: Outline the tasks involved in personal selling, describe the various types of sales promotions, and distinguish between publicity and public relations . Personal selling: promotional tool in which a salesperson communicates one to one with potential customers - personal interaction requires trust b/t buyer and seller - most expensive form of promotion b/c presentations made to one/two indivs. at a time Sales promotions: short-term promotional activities designed to stimulate consumer buying or cooperation from distributors and other members of the trade
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