Marketing Pricing Strategies

Your paper discussed the importance of pricing to a company's strategic position in the marketplace. The different considerations in the pricing strategies were also explored. You described good value pricing and the concept of loss leader as one of Wal-Mart's strategies.

When a business can provide a lower cost, then the business can have the ability to lower their price. Providing a better pricing system, along with sharp value products can only increase the chance of growth and customers’ overtime.

Penetration pricing may negatively impact brand image and product positioning in the long run because it may give a brand a negative image of being cheap. The opposite effect of what was intended may occur and even though the product can be bought for less, consumers may think the quality is less because of that; along with that comes a decline in value proposition as well.

This based on customer pricing method. It relies on consumer 's emotive responses, subjective views and feeling towards specific purchases.

Consumers always base their decisions on price. The price of an item is important as it can influence consumers to purchase the product or not. If a product is out of their price range most people aren’t likely to purchase the product unless

Marketing has become more and more important, especially as the purposes of marketing expanded into performing marketing researches. Through marketing researches, it is asserted that marketing starts with a real customer need. Classic marketing, has, nonetheless, focused on making the need that will draw customers, and this stresses the advertising power of marketing (Woodall 2007, p.1284). This is also called the sales concept of marketing (Woodall 2007, p.1285). An example is how advertising lures people into buying a brand, because of the

Although they are able to somewhat control prices due to their product differentiations and their status as a brand name, they will make profits by lowering price. However the danger in lowering prices is that with each additional product, utility will drop for the consumer. Therefore, firms must be careful in balancing consumer demand with the projected consumer utility.

The emergence of high-low pricing tactics materialized out of an earnest desire to retain a profitable margin of sales. Usually, this pricing strategy involves a period of high, often subjective, initial prices followed by a period of low discount prices. One can attribute the effectiveness of using the

Braun, K.A. (1999, March). Postexperience Advertising Effects on Consumer Memory. . Journal of Consumer Research, 25(4), 319-334. Retrieved from http://web.ebscohost.com.ezproxy.apollolibrary.com

“Marketing communication is an ever changing field. New theories, new techniques, cultural changes and technological advances all combine to create a dynamic environment within which marketers try to ensure that their messages get through to their target audiences” (Blythe, 2006, p.2). Fill (2005) argues that marketing communications is the way in which organisations reach their target audiences or it is an “audience-centred activity” (Fill, 2005, p.9).

Promotion Strategies 1. Explain what you think would be an appropriate promotions strategy for both of them. In doing so compare and contrast the two promotions strategies explaining why you think they would be similar or different. (50%)

Marketing communications are intended to both inform and persuade a target audience, with a view to influence the behaviour of that group. The behaviour of interest to organizations can range from encouraging owners to adopt improved practices or to produce a particular product or service. As has been said on other occasions, each element of the marketing mix must be designed so as to further the overall marketing strategy, and this includes marketing communications.

Price interacts with all other elements of the marketing mix to determine the effectiveness of each and of the whole. The objectives that guide pricing strategy should be a subset of the objectives that guide overall marketing strategy. Thus, it is probably wrong to view price as an independent element of marketing strategy or to assert that price, by itself, is a central element in the marketing mix.” (Webster, 1979)

It cannot be denied that the objective of advertising to specific target audience group has significant benefits for increasing market share and sales in organisation’s category (NIVEA MEN). Organisations are shifting to a new approach to communication, which supported the organisations engage in potential market (Madhavaram, S., 2005).

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).