This document discusses pricing strategies in retailing. It outlines several factors that affect retail pricing, including consumers, competitors, manufacturers/suppliers, and government regulations. It also describes basic pricing options like discount orientation, market orientation, and upscale orientation. The document then examines specific pricing strategies retailers can use, such as cost-plus pricing, competition-based pricing, and demand-based pricing. It provides examples of how to calculate markups and make price adjustments over time through markdowns. The overall aim of the pricing strategies discussed is for retailers to set prices that achieve profits while satisfying customers.
Retail Management Notes, Basics of Retail Management, Classification of Retailers, Types of Retailers, Scope of Retailing, Functions of Retailers, Role of Retailers in Distribution Channel, Indian retailscape, organized and Unorganized Retailers,
Retail Management Notes, Basics of Retail Management, Classification of Retailers, Types of Retailers, Scope of Retailing, Functions of Retailers, Role of Retailers in Distribution Channel, Indian retailscape, organized and Unorganized Retailers,
Theoretically, retailers maximize their profits by setting prices based on the price sensitivity of customers and the cost of merchandise and considering the prices being charged by competitors. Initial markup – retail selling price initially set for the merchandise minus the cost of the merchandise
The retail strategic planning process starts with the identification of store's mission for its existence and hence the scope of the retail store. The mission of a store entails identifying the goods and services that will be offered to customers
Theoretically, retailers maximize their profits by setting prices based on the price sensitivity of customers and the cost of merchandise and considering the prices being charged by competitors. Initial markup – retail selling price initially set for the merchandise minus the cost of the merchandise
The retail strategic planning process starts with the identification of store's mission for its existence and hence the scope of the retail store. The mission of a store entails identifying the goods and services that will be offered to customers
New-Product Pricing Strategies
Product Mix Pricing Strategies
Price Adjustment Strategies
Price Changes
Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market
Product quality and image must support the price
Buyers must want the product at the price
Costs of producing the product in small volume should not cancel the advantage of higher prices
Competitors should not be able to enter the market easily
Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
Price-sensitive market
Inverse relationship of production and distribution cost to sales growth
Low prices must keep competition out of the market
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROVWO
In today’s era of AI, personalization is more than just a trend—it’s a fundamental strategy that unlocks numerous opportunities.
When done effectively, personalization builds trust, loyalty, and satisfaction among your users—key factors for business success. However, relying solely on AI capabilities isn’t enough. You need to anchor your approach in solid principles, understand your users’ context, and master the art of persuasion.
Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
SEO as the Backbone of Digital MarketingFelipe Bazon
In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
Core Web Vitals SEO Workshop - improve your performance [pdf]Peter Mead
Core Web Vitals to improve your website performance for better SEO results with CWV.
CWV Topics include:
- Understanding the latest Core Web Vitals including the significance of LCP, INP and CLS + their impact on SEO
- Optimisation techniques from our experts on how to improve your CWV on platforms like WordPress and WP Engine
- The impact of user experience and SEO
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
First Things First: Building and Effective Marketing Strategy
Too many companies (and marketers) jump straight into activation planning without formalizing a marketing strategy. It may seem tedious, but analyzing the mindset of your targeted audiences and identifying the messaging points most likely to resonate with them is time well spent. That process is also a great opportunity for marketers to collaborate with sales leaders and account managers on a galvanized go-to-market approach. I’ll walk you through the methods and tools we use with our clients to ensure campaign success.
Key Takeaways:
-Recognize the critical role of strategy in marketing
-Learn our approach for building an actionable, effective marketing strategy
-Receive templates and guides for developing a marketing strategy
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
Is AI-Generated Content the Future of Content Creation?Cut-the-SaaS
Discover the transformative power of AI in content creation with our presentation, "Is AI-Generated Content the Future of Content Creation?" by Puran Parsani, CEO & Editor of Cut-The-SaaS. Learn how AI-generated content is revolutionizing marketing, publishing, education, healthcare, and finance by offering unprecedented efficiency, creativity, and scalability.
Understanding
AI-Generated Content:
AI-generated content includes text, images, videos, and audio produced by AI without direct human involvement. This technology leverages large datasets to create contextually relevant and coherent material, streamlining content production.
Key Benefits:
Content Creation: Rapidly generate high-quality content for blogs, articles, and social media.
Brainstorming: AI simulates conversations to inspire creative ideas.
Research Assistance: Efficiently summarize and research information.
Market Insights:
The content marketing industry is projected to grow to $17.6 billion by 2032, with AI-generated content expected to dominate over 55% of the market.
Case Study: CNET’s AI Content Controversy:
CNET’s use of AI for news articles led to public scrutiny due to factual inaccuracies, highlighting the need for transparency and human oversight.
Benefits Across Industries:
Marketing: Personalize content at scale and optimize engagement with predictive analytics.
Publishing: Automate content creation for faster publication cycles.
Education: Efficiently generate educational materials.
Healthcare: Create accurate content for patients and professionals.
Finance: Produce timely financial content for decision-making.
Challenges and Ethical Considerations:
Transparency: Disclose AI use to maintain trust.
Bias: Address potential AI biases with diverse datasets.
SEO: Ensure AI content meets SEO standards.
Quality: Maintain high standards to prevent misinformation.
Conclusion:
AI-generated content offers significant benefits in efficiency, personalization, and scalability. However, ethical considerations and quality assurance are crucial for responsible use. Explore the future of content creation with us and see how AI is transforming various industries.
Connect with Us:
Follow Cut-The-SaaS on LinkedIn, Instagram, YouTube, Twitter, and Medium. Visit cut-the-saas.com for more insights and resources.
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
2. Overview
Pricing is the value that is placed on something. That
something is usually goods and service
Products must be priced in a way that both achieves profits and
satisfies customers
3. Basic pricing Options
Discount orientation – low prices as competitive advantages
At the market orientation – uses average prices to offer solid
value
Upscale orientation – using a prestigious image as competitive
advantage
4. External Factors Affecting
Retail Pricing
Consumers
Governmental issues
Manufacturers/wholesalers/suppliers
Current and potential competitors
5. Consumer Factors
Price elasticity of demand – Measures sensitivity of consumers
to price changes.
A small change in prices results in a big change is quantity –
very elastic
Change in prices does not result in significant change in
quantity it is inelastic. Elasticity = ∆ Q/ ∆P
6. Consumer_2
Price sensitivity varies by market segment based on market
orientation
1. Economic Consumers
2. Status-oriented consumers
3. Assortment oriented consumers
4. Personalizing consumers
5. Convenience oriented consumers
7. Government Issues
Horizontal pricing fixing – parties
within the same level in channel agree to
set prices
Vertical price fixing – when
manufacturers or wholesalers seek to
control the retail prices of their products
Price discrimination –occurs when
retailers sell same product at different
prices to different consumers under
same conditions.
8. Justifiable reasons
to price discrimination
Products are physically different
Retailers paying different prices are not competitors
Competition is not injured
Price differences are due to differences in costs
Market conditions change
9. Government issues
Minimum price laws- can not sell certain
items for less than costs
Predatory pricing- seeks to reduce
competition by pricing products very low
Loss leaders - price products below costs to
attract more store traffic
Unit pricing- must provide total price and
price per a certain unit such as price per
dozen. or price per unit
10. Government issues
Item price removal – prices are marked
only on shelves and not on individual
items. Scanning equipment reads pre-
marked code at the checkout counter
Price advertising – cannot advertising a
price reduction unless it has actually been
done
Price matching- lowest price guaranteed
Bait and switching – advertising a low
price but then try to switch customers to
another product when they enter the store
or say the product is not available.
11. Manufacturers, wholesalers and
Other Suppliers
May have conflicts between manufacturers, wholesalers
regarding the pricing of merchandise
Private label is increasing – selling against the brand
Gray market goods are sold by retailers and not liked by
manufacturers
12. Competition and retail Pricing
Market pricing- many retailers are in market and consumers
have many to chose from which makes prices of products very
similar
Administered pricing- seeks to attract consumers based on
uniqueness of offering rather than price (Different price for
image, service or assortment)
15. Pricing objectives
Sales or market share – market penetration strategy – seek big
revenues by reducing prices
Profit objectives – market skimming strategy. Sets premium
prices and attracts customers who are less price sensitive.
Objective is recovery of cash quicker.
16. Examples of Specific pricing
Objectives
Maintain a proper image
Clear seasonal inventory
Provide good customer service
Encourage repeat business
Match competitors prices
Increase shopper traffic
17. Broad Price Policy
Broad price policy a retailer generates an integrated price plan
with short and long run perspective
Price policy is integrated with target market, retail image, and
other elements of retail mix
Example of policy: no competitors will have lower prices
18. Price Strategy
Demand Oriented –price set based on consumers desire
Cost Oriented – costs are calculated and profits are added to
set price
Competition oriented – prices set to match competition
19. Demand Oriented
Use demand to estimate what consumers are willing to pay
Price- quality association –the higher price the higher the
quality
Prestige pricing – higher the price the better, consumers
preferences
20. Cost Oriented
Adding a $ amount to costs to set price
Markup pricing
Markup – difference between merchandise costs and selling
price
Example: retailer cost for a shirt is $25
He sells shirt for $45
Markup - $45-25 = $20
21. Markup examples Continued
Markup percentage = price-cost/price
(30%) markup desired
$12.00 retailers costs
What will the selling price be?
.30 = X - $12.00/ X
12/1-.30= 12/.70 = $17.14
Retail selling price is $17.14
22. Markup examples Continued
Desire a 40% markup , if the candy retails for .79, what costs
should a retailer pay for the candy
.79 (1-.40)= .79 (.60) = .474
24. Competition oriented pricing
Use competitions prices ONLY as a guide
can price above, below or at same level as competition
25. Integrated approaches to pricing
strategy
Must consider many factors such as
1. if price reduces will revenues increase greatly
2. Will a given price, allow a traditional markup to be attained
3. Can above market prices lead to superior image
26. Implementation of Price
Strategy
Customary and variable pricing
1. Customary pricing –sets price at one
level and seek to keep them at these
levels
2. Everyday low pricing (EDLP) sell goods
at consistently low prices
3. Variable pricing – change prices as costs
vary
4. Yield management pricing – determines
price that yields the greatest profits for a
given period.
27. Implementation of Price
Strategy
One price policy and flexible pricing
1. One price policy – charge all customers the same
price
2. Flexible pricing – let consumers bargain over prices
3. Contingency pricing -
28. Implementation of Price
Strategy
Odd pricing- set prices below even dollar
amt, .49 .99. 1.99, 99.99
Leader pricing
selling selected items at reduced price to
build store traffic
Multiple –unit – 2 for .79
bundled pricing combines several products
Price lining- sell products at a limited price
range.
29. Price Adjustments
Price adjustments let retailer use price as an adaptive
mechanism
1. markdowns 2. additional markups
3. employee discount
Markdowns are taken because of competition, seasonality,
demand patterns, merchandise costs and pilferage.
30. Price Adjustments
Markdown percentage =
Dollar markdown/net sales
Off-retail markdown percentage =
original price – new price/original price
31. Price Adjustments
Markdown control
Timing markdowns
1. Early markdowns – may results in selling
out quicker than late markdowns
2. Staggered markdown – discounted
throughout selling period
- automatic markdown plan
4. storewide clearance – conducted once or
twice a year