2. The Four P's
The four p's are product, price,
place, and promotion.
- Each of these marketing tools can
affect one another. For example, if
you decide to raise your price on a
product, would you sell the product in
the same place? Or would you move
to a different area to sell the product
and promote it to new customers?
That way, there's a better chance the
new consumers are willing to pay
and are interested in the new price at
the same time.
3. Advertising and Publicity
Advertising costs money but publicity is FREE
When you advertise, the opinion is yours
Publicity on the other hand is someone elses opinioin
on your product
With both advertisig and publicity you get
PROMOTION
4. How to get publicity
Mail or fax pitch letters and press releases
Call media and ask who you should contact
Send out information when you are going to do a
special event
NOTIFY THE PRESS WELL IN ADVANCE
Call them, don't wait for them to call you
Don't give up, the worse thing that the press can
say is No
5. Keystoning.
A method used by a wide range of retailers is
called, "keystoning." Retailers who buy goods
wholesale and resell them to the consumer, which
means doubling the wholesale price to arrive at a retail
price.
Ex. Buying watches $89 each from a wholesaler, then
selling them for $120. This will not only cover your
costs, but provide you with a beneficial profit.
6. Value Pricing & Other Pricing
Strategies.
Consumers are driven by a strong desire to get value for their
money. Value pricing is not just price-cutting. It's finding the
balance between quality and price which will give customers
the value they seek.
REMEMBER: Value is not the same as cheap. If the quality of
a product is superior, consumers will be willing to pay higher
prices.
*Other pricing strategies..........
-Cost-Plus: When figuring all your costs and adding the desired
profit margin. This method fails, to consider marketing plans.
-Penetration Strategy: This works well during the early stages of
a products life cycle, as it's based on an initial low price to gain
7. Continuing.........
market share.
-Skimming Strategy: It's the opposite of of Penetration
Strategy, this method seeks to charge high prices during a
products introductory stage, when it is new and has no or few
competitors.
- Meet or Beat the Competition: This is a common strategy
in the service business. Every now and then airlines have the
tendency in competing intensely by the lowering of their ticket
prices. The more you can show that your business is different
from your competition, the less you will have to compete with
your price.
Make sure you pick a price that communicates your
competitive advantage to your market segment.
