Pricing promotional mix & communication


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Pricing promotional mix & communication

  2. 2. Marketing Communications Marketing communications are the messages and related media used to communicate with a market. It is the promotion part of the marketing mix or the four Ps – Price, Promotion, Place and Product. Communication and the Service Marketing Triangle • Internal Marketing Communication • External Marketing Communication • Interactive Marketing Communication
  3. 3. Service Communication 1) Objectives of Consumer Protection for Services a) Objectives targeted at customers.     Creating & increasing an awareness of a new or existing service. Encouraging customers to try the service. Changing the timing of customer demand for the service. Communicating the unique features of service and its distinct services.
  4. 4. b) Objectives targeted at Intermediaries.  Convincing intermediaries to deliver a new or a redesigned service  Convincing existing intermediaries to push the promotion service including display of prices, point of sales merchandising, etc.  Protecting intermediaries against price negotiation by customers at the point of purchase. c) Objectives targeted at competition. Changing competition, communication must create an offensive or defensive impact based on the situation. 2) Developing the Promotional Mix The marketing communication mix communicates information to customers about product & services. It uses a combination of strategies to influence the customers to buy the services.
  5. 5. Promotion Mix Promotion mix refers to the type, combination and proportion of various promotional elements used to promote sales. The promotion mix is also known as marketing communication mix or promotional blend, Which consists of five major tools- Advertising, Sales promotion, Personal selling, Public relations and Publicity. Definition According to Masson and Ruth “promotion consists of those activities that are designed to bring a company’s goods and services to the favorable attention of customer.”
  6. 6. Elements of Promotional Mix • Advertising Advertising is a paid form of non-personal mass communication by an identified sponsor. They aim to promote the product, service or idea to the target audience. The mass media used include print media, direct mail, audio visual media, bill boards etc. • Sales Promotion Sales promotion includes activities that seek to directly induce or indirectly serve as incentives to motivate, a desired response on the part of the target customers, company sales people and middle men and their sales force. These activities add value to the product, includes discounts, gifts, contests, premiums, displays and coupons etc.
  7. 7. • Personal Selling Personal selling involves oral presentation in a conversation with one or more prospective buyers for the purpose of making sales. It creates product awareness, stimulates interest, develops brand preferences, negotiates price etc • Public Relations Public relation is a process of creating and maintaining successful relations with public. Public relations tools are Speeches, News, Events, Written materials etc. • Publicity Publicity is news carried in the mass media about a firm and its products, policies, personnel or actions. Organizations frequently provide the material for publicity through news releases, photographs and press conferences.
  8. 8. Pricing in Services Price Price is the amount we pay for goods, services or ideas. Pricing Pricing is equivalent to the total service offering. It includes brand name, delivery and other benefits. Pricing involves establishing pricing objectives, identifying the factors governing the price, determining the methods of pricing and formulation of pricing strategies and policies.
  9. 9. Approaches to Pricing Services 1) Cost Based Pricing This policy assures that no product is sold at a loss, since price covers the full cost incurred. The selling price is equal to cost of production plus expected profit. This policy ignores competition or demand, which are the chief determinants of price. Methods of cost based pricing • • • Cost Plus Pricing Targeting Pricing Break-Even Pricing
  10. 10. 2) Demand Oriented Pricing Policy This policy, the demand is the pivotal factor. The firm does not fix a price but charges what a buyer can pay. Price is fixed by simply adjusting it to the market condition. A high price is charged when demand is high and a low price is fixed when the demand is low. Price determination is usually adopted under such market situations Methods Demand Oriented Pricing Policy • • Skimming Pricing Penetration Pricing
  11. 11. 3) Competition Oriented Pricing Policy Most companies set prices after a careful consideration of the competitive price structure. Deliberate policies may be set for selling above, below or generally in line with competition. Depending upon the changes in the competitive prices, the price of the products of the firm will vary. Methods of Competition Oriented Pricing Policy • • • Premium Pricing Discount Pricing Going Rate Pricing
  12. 12. Kinds of Pricing (Pricing Strategies) • Odd Pricing (Charm pricing) A pricing ending in an odd number is known as odd pricing. • Psychological Pricing When a firm fixes the price of its products at a full number, it is known as psychological pricing • Dual Pricing (Discriminatory Pricing) When a producer sells the same products at two or more different prices, it is called dual pricing. It is possible only when different brands are marketed in the same market and it adopted in Railways.
  13. 13. • Negotiated Pricing This method is followed by industrial suppliers. The price is not fixed. The price to be paid depends on bargaining. • Promotional Pricing Promotional pricing takes into consideration the fact that price is an important ingredient in the marketing mix. Under this practice selling price is fixed to increase the volume of sales. • Expected Pricing Under this method, the price acceptable by the consumers is found out. The price range is fixed by conducting surveys with the consumers and the price is fixed considering the response of the consumers.
  14. 14. Thank YOU !!!!