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Retail Pricing & Promotion presentation.pptx
- 1. Retail Pricing &Promotion
- 3. Pricing Options forRetailers • Discount orientation : Low price and low cost • At-the-market orientation: Average price, Middle class average to above average products • Upscale orientation: prestigious image store
- 4. Factors Affecting RetailPrice Strategy
- 5. Consumer: Price Elasticityof Demand • The sensitivity of customers to price changes in terms of the quantities they will buy: • Elastic – small percentage changes in price lead to substantial percentage changes in the number of units bought • Inelastic – large percentage changes in price lead to small percentage changes in the number of units bought
- 6. Market Segments byPrice Sensitivity • Economic consumers: Looking for lowest price all stores same • Status-oriented consumers: Different looking for prestige brands • Assortment-oriented consumers: looking for a strong selections and fair price • Personalizing consumers: the buy where they feel a bond with employees • Convenience-oriented consumers: nearby store
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- 8. Price Strategy Concepts •Customary Pricing • Fixing price • Variable Pricing • Matching demand • One-Price Policy • Flexible Pricing • Due to bargaining • Odd Pricing • Leader Pricing • Multiple-Unit Pricing (Quantity) • Price Lining (Floor and ceiling level of products)
- 9. Price Adjustments • Adaptivemechanism • Markdown • Additional markup • Employee discount
- 10. Timing Markdowns • Earlymarkdown policy: early lowering of price even though demand is fairly high • Late markdown policy: Taking maximum opportunities to sell in original price • Automatic markdown plan: Automatically controlled prices depends on stock • Storewide clearance : In special events e.g. Eid Clearance, Summer Clearance
- 13. Procedures for Settinga Promotional Budget • All-you-can-afford method • Competitive parity method • Percentage-of-sales method • Objective-and-task method
- 14. Advertising Objectives forRetailers • Lifting short-term sales • Increasing customer traffic • Developing and/or reinforcing a retail image • Informing customers about goods and services and/or company attributes • Easing the job for sales personnel • Developing demand for private brands
- 15. Public Relations Objectivesfor Retailers • Increase awareness of the retailer and its strategy mix • Maintain or improve the company image • Show the retailer as a contributor to the public’s quality of life • Demonstrate innovativeness • Present a favorable message in a highly believable manner • Minimize total promotion costs
- 16. Personal Selling Objectivesfor Retailers • Persuade customers to buy • Stimulate sales of impulse items or products related to customers’ basic purchases • Complete customer transactions • Feed back information to company decision makers • Provide proper levels of customer service • Improve and maintain customer satisfaction • Create awareness of items also marketed through the Web, mail, and telemarketing
- 17. Types of SalesPromotions • Displays • Contests • Sweepstakes • Coupons • Frequent shopper programs • Prizes • Samples • Demonstrations • Referral gifts • Other limited-time selling efforts
- 21. In-Store Promotions • POSPromotion (Light boxes, Shelf Edging, Standees, Posters, Banners, Mobiles)
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- 23. In-Store Promotions • ImpulseBuying • In Store Contests • Pop-Up Stores
- 24. In-Store Promotions • ProductShelf Placement: (Stretch Level, Eye Level, Touch Level, Stoop Level) • Email Receipts • Special Bundles • Survey Giveaway