Hey, could someone help me with these questions please? Thanks!
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Hi!!
Pricing Methods-
Skimming: Setting the initial price high to get those rich people to buy first, then reducing price over time.
Eg. iPhone launches. A brand new iPhone on the release date may cost you $1300, but after a month, it will only cost $1100 because those willing to pay have been satisfied.
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Penetration: Setting the initial price lower than competitors to quickly gain market share.
Eg. Aldi. Part of their success in the Australian market is being much cheaper than Woolies and Coles that we loved it. Hence, their success in taking a big chunk of their market share.
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Loss Leaders: An item that is priced very low on purpose solely to attract customers into the store. Usually makes no profit or even a loss.
Eg. Frozen Coke at McDonalds. I've actually been with McDonalds managers, and they tell me that the Frozen Coke sells at a loss to get customers in.
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Price Points: A series of prices that are recommended to be marketed at. This will be determined by current supply/demand, competitor price, and the market.
Eg. A manufacturer may recommend or ask a retailer to set a specific price to their items.
Marketing StrategiesMarket Segmentation: I have already written a guide on this. Just scroll to the top of this Question Thread page. (It's the first one on this page)
Product/Service Differentiation: Customers always want more bang for their buck. If a business can set themselves apart from their competitor, either that be better features or whatnot, this will set yourself apart from all your other competitors. This will usually perceive the business as higher quality and will gain more publicity.
Eg. When Apple first introduced their iPhone back in like 2007, their competitors such as Nokia could not compete with the smartphone because it offered much more features than a brick, and it really set Apple apart in the mobile market.
Branding/Packaging: A brand is a trademark used by a business that distinguishes a business' product from its competitors. This can be in the form of colours, pictures, shapes, etc. The brand is usually featured on the packaging itself so that customers can identify products easily.
Eg.
-Coca Cola has trademarked the distinctive shape of their Coke bottle.
-Cadbury has trademarked that certain shade of purple on their wrappings.
-The packaging of Cadbury's Favourites is trademark purple as well as having a transparent window. That allows the customer to see inside. The insides contain the many brands of chocolate that people are already well familiar of such as Dream, Crunchie, etc.
Promotions-Advertising
-Personal selling and relationship marketing
-Corporate social responsibility also fits in here too.
-Opinion leaders: Famous people who advertise/endorse a product.
Eg. George Clooney and that coffee thing, Nespresso (?)
-Word of Mouth: People who have bought/tried the product, and are talking about it to their friends as reviews.
It is a chain reaction as their friedns may also tell their friends and so on. Thus, word of mouth is very risky and can lead to poor reputation because the business cannot control it.
Eg. If a Michellin reviewer calls your restaurant crap in their reviews, your business will suffer because Michelin writes guide books whatnot.
Market mix is basically the 7P's of marketing. A quick google should be able to answer that if it is an IDENTIFY question.
Hope this helpss
sorry if it's a bit lengthy like a guide