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    7Ps Price and Promotion

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    7Ps Price and Promotion

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    3 views36 pages

    7Ps Price and Promotion

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    hs5tvrp7zt

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 36

    9th Grade

    MARKETING
    MIX
    Price and Promotion
    03
    - monetary value a customer pays in
    Price exchange for a merchandise or service.
    A common strategy for beginning
    small businesses is pricing their
    product lower than their competitors.
    Your pricing strategy should reflect
    your product’s positioning in the
    market.
    The amount should not project
    your business as too cheap
    or too expensive. Low pricing
    delays your business’ growth while
    high pricing kicks you out of the
    competition (Acutt, 2020).
    PRICING
    STRATEGIES
     Cost Plus
     Value-based
     Competitive
    COST PLUS

    Cost Plus is taking the


    production expenses (including
    labor, materials and other
    resources) and adding up a certain
    profit percentage and then the
    sum will be the product’s price.
    EXAMPLE OF COST
    PLUS PRICING
    Imagine you run an e-commerce store
    that sells candles. Here’s how cost-plus
    pricing works for your candle business:

    Cost of Production: It costs you $10 to make


    each candle, including materials and labor.
    Desired Profit Margin: To sustain your business,
    you need to make a 50% profit on each candle.
    This accounts for the time taken to:

    ● Produce the ingredients


    ● Create the candle
    ● List it on your website
    ● Ship it out
    VALUE BASED
    Instead of using the production cost
    as basis, an entrepreneur can consider the
    customer’s perception of the product’s
    value. The perception of the purchaser is
    dependent on the product’s quality, the
    brand standing, and benefits, aside from
    the cost factors.
    Value-based pricing is a way of deciding how
    much to charge for a product or service by
    considering how much customers think it's
    worth. By understanding what people are
    willing to pay, businesses can set prices that
    reflect customers' value in their offerings.
    Instead of focusing on production costs,
    companies consider the value their offerings
    provide to consumers, making it easier for
    them to decide on a fair price.
    In this approach, the price is adjusted based
    on how much the customer values the
    product or service, rather than being tied
    solely to historical costs.
    EXAMPLE OF VALUE
    BASED PRICING
    Value-based pricing is used in various
    industries, including art, diamonds,
    technology, fashion, and cosmetics.

    Here are some examples of value-based


    pricing:
    1. A tailor charges 200 pounds to make a
    wedding dress with beautiful designs and
    lots of decoration, while a famous fashion
    designer charges 600 pounds to make the
    same features as the wedding dress.
    Apple, Tesla, and Starbucks have used the
    power of value-based pricing to capture
    the hearts and wallets of their customers.
    When using VBP, sellers should emphasize
    the value of their product or service that
    customers can expect as the main factor
    determining the selection/purchase.
    COMPETITIVE
    You can conduct a survey of the
    pricing applied by your competitors on a
    similar product that you are trying to sell
    and then decide whether to price your
    product cheaper, the same, or higher. You
    should also monitor their prices and be
    able to respond to variations.
    EXAMPLE OF
    COMPETITIVE PRICING
    Ecommerce marketplaces, where retailers
    like Amazon use pricing algorithms to adjust
    their prices according to the market
    demand and competitors' prices.
    Ride-sharing services, where apps like Uber
    increase their prices when the demand is
    higher, and lower them when the demand is
    lower.
    Coffee chains, where companies like
    Starbucks monitor their competitors'
    prices and offer similar or higher prices for
    their products.
    Activity: Analyze the situations below and identify the pricing scheme used.

    1. The seller added 20% mark up to the capital price.


    2. The retailer sold the product based on its class.
    3. The retailer sees that the quality of the product is
    good so he/she sold it at a higher price.
    4. The merchandiser sold the dress at its usual price
    in the market.
    5. The merchandiser traded the dress 20 pesos lower
    than its price in the market.
    25
    04
    The strategies you use to endorse your
    Promotion product or service in the market.
    COMMON MARKETING
    COMMUNICATION METHODS IN
    PROMOTING

     Advertising  Sales Promotion


     Direct Marketing  Digital Marketing
     Personal Selling  Public Relations
    1. ADVERTISING
    - is a series of related, well-timed, carefully
    placed television ads coupled with print
    advertising in selected magazines and
    newspapers. An effective advertising
    contains a clear message that is directed
    to a certain audience and is done through
    suitable channels.
    2. DIRECT MARKETING
    - refers to direct-to-consumer mail pieces
    sent to target segments in selected
    geographic areas, reinforcing the
    messages from the ads.
    3. PERSONAL SELLING
    - uses in-person interaction to sell
    products and services. This is done by the
    company’s sales personnel who are
    personally interacting with the customers.
    4. SALES PROMOTIONS
    - are marketing communication tools for
    stimulating revenue or providing incentives or
    extra value to distributors, sales staff, or
    customers over a short time period. Sales
    promotion activities include special offers,
    displays, demonstrations, and other nonrecurring
    selling efforts that are not part of the ordinary
    routine.
    5. DIGITAL MARKETING
    - is an umbrella term for using digital tools to
    promote and market products, services,
    organizations and brands. People are now more
    dependent on digital communications. There are
    several essential tools in the digital marketing tool
    kit: email, mobile marketing, websites, and social
    media marketing.
    6. PUBLIC RELATIONS
    - is the process of maintaining a favorable image
    and building beneficial relationships between an
    organization and the public communities, groups,
    and people it serves. PR is often referred to as “free
    advertising”.
    What is the importance of
    Price and Promotion in
    developing a Marketing
    Strategy?

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