Easier for customer to find type of product and business to encourage customer

Easier for customer to find type of product and

This preview shows page 19 - 22 out of 26 pages.

Easier for customer to find type of product and business to encourage customer to ‘trade up’ to a more expensive model Price and quality interaction (relationship) Products of superior quality are sold at higher prices and vice versa - High manufacture costs Helps determine image (superior or cheap)
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Prestige pricing : high price charged to give aura of quality and status, can be falsified Infrequently used items display stronger price quality relationship Promotion Describes the methods used by a business to inform, persuade and remind a target market about its products Attempts to - Attract new customers - Increase brand loyalty through image - Encourage consumers to purchase more and new products Elements of the promotion mix – advertising, personal selling and relationship mar- keting, sales promotion, publicity and public relations Various promotion methods In promotional campaign Advertising (essential tool) Provides businesses with the flexibility to reach an extremely large audience or to focus on a small, distinct target market segment Advertising media: refers to the many forms of communication sued to reach an audi- ence, includes: - Mass marketing – television, radio, news - Direct – catalogues to households - Telemarketing - E – marketing - Billboards Variables include: - Type of product and positioning - Size of target market and characteristics - Cost of advertising medium Personal selling Involves the activities of a sales representative directed to a customer in an attempt to make a sale Expensive, however human aspect and offering expensive, complex or highly individual products Three unique advantages: - Modified to customer circumstances - Long term relationship through personal assistance - After sales customer service – installation, warranties, servicing Relationship marketing
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Development of long term, cost – effective and strong relationships with individual cus- tomers, as the want more individualised treatment Create loyalty by meeting needs Fly by rewards by Coles group Sales promotions Use of activities or materials as direct inducements to customers, with the aim to: - Entice new customers - Encourage trail purchase - Increase saes to existing and repeat Used to increase the effectiveness of other promotion activities , include: - Coupons: offer discounts at stated amount - Premiums: gift offered in return for using the product - Refunds: part of purchase is given back to those which send a voucher, power tools and kitchen appliances - Samples: sales rep - Point of purchase displays: special signs, displays and racks, end of sales to gain customer attention Publicity and public relations Publicity: any free news story about a business’s products Main aims of publicity is to: - Enhance awareness of product image and awareness of product - Highlight business favourable features - Help reduce negative image that may have been created Public relations: actives aimed at creating and maintaining favourable relations be-
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