Examples of Promotional pricing in the following topics:
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- Promotional pricing means temporarily reducing the price of an established product in order to increase interest in customers.
- Fundamentally, there are three basic objectives of promotion:
- There are different ways to promote a product in different areas of media.
- Promotional pricing means temporarily reducing the price of an established product in order to increase interest in customers.
- Promotional pricing often involves reducing prices to unsustainably low levels.
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- High-low pricing is a strategy where most goods offered are priced higher than competitors, but lower prices are offered on other key items.
- High-low pricing is a method of pricing for an organization where the goods or services offered by the organization are regularly priced higher than competitors.
- However, through promotions, advertisements, and or coupons, lower prices are offered on other key items consumers would want to purchase.
- The lower promotional prices are designed to bring customers to the organization where the customer is offered the promotional product as well as the regular higher priced products.
- High-low pricing is a type of pricing strategy adopted by companies, usually small and medium sized retail firms.
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- Price in global marketing strategies can be influenced by distribution channels, promotional tactics, and the quality of the product.
- Support a product's positioning so that it is consistent with product, promotion and placement
- Price in global marketing strategies can be influenced by distribution channels, promotional tactics, and the quality of the product.
- High prices will also be needed to cover high costs of manufacturing, or extensive advertising and promotional campaigns.
- Placement, product and promotion work in concert with pricing in the global marketing mix.
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- Non-price competition involves firms distinguishing their products from competing products on the basis of attributes other than price.
- Since price competition can only go so far, firms often engage in non-price competition.
- Non-price competition typically involves promotional expenditures (such as advertising, selling staff, the locations convenience, sales promotions, coupons, special orders, or free gifts), marketing research, new product development, and brand management costs.
- Firms will engage in non-price competition, in spite of the additional costs involved, because it is usually more profitable than selling for a lower price and avoids the risk of a price war.
- Non-price competition may also promote innovation as firms try to distinguish their product.
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- A high price indicates high quality.
- The other elements of the marketing mix (product, place and promotion) may seem to be more glamorous than price, and thus get more attention, but determining the price of a product or service is actually one of the most important management decisions.
- While product, place and promotion affect costs, price is the only element that affects revenues, and thus, a business's profits.
- A high price indicates high quality.
- Pricing might not be as glamorous as promotion, but it is the most important decision a marketer can make.
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- Other factors that should be considered when setting a list price include fixed order amounts, quantity breaks, promotion or sales campaigns, non-price costs (travel time to the store, wait time in the store, disagreeable elements), specific vendor quotes, the price prevailing on entry, shipment or invoice dates and the combination of multiple orders or lines.
- Pricing is a key variable in micro-economic price allocation theory and part of the four "P's-" of the marketing mix; pricing, product, promotion and place.
- The manufacturer's suggested retail price (MSRP), list price or recommended retail price (RRP) of a product is the price which the manufacturer recommends to the retailer.
- A good pricing strategy is one that strikes a balance between the price floor (the price below which the organization ends up in losses) and the price ceiling (the price beyond which the organization experiences a no demand situation).
- Micro-marketing is the practice of tailoring products, brands (micro-brands), and promotions to meet the needs and wants of micro-segments within a market.
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- There are two types of sales promotions; consumer and trade.
- A consumer sales promotion targets the customer while a trade sales promotion focuses on organizational customers that can stimulate immediate sales.
- Commonplace techniques include price deals that offer a temporary price reduction while cents-off deals offer a brand at a lower price, usual as a percentage marked on the package.
- Price pack deals offer a certain percentage more of the product for the same price while a loss leader offers a temporary reduction on a popular product's price in to stimulate sales for other products offered.
- They are used to lower prices, for discounts, free goods and value added giveaways.
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- In economics, competition is the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion.
- Competitive-based pricing, or market-oriented pricing, involves setting a price based upon analysis and research compiled from the target market .
- For instance, if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at a higher or lower price, all depending on what the company wants to achieve.
- One advantage of competitive-based pricing is that it avoids price competition that can damage the company.
- Status-quo pricing, also known as competition pricing, involves maintaining existing prices or basing prices on what other firms are charging.
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- A binding price floor is a price control that limits how low a price can be charged for a product or service.
- A price floor is a price control that limits how low a price can be charged for a product or service.
- By establishing a minimum price, a government seeks to promote the production of the good or service and ensure that the producers have sufficient resources to go about their work.
- For a price floor to be effective, it must be greater than the free-market equilibrium price.
- If a price floor is set above the equilibrium price, consumers will demand less and producers will supply more.
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- Uniform delivery pricing (also called postage stamp pricing): The same price is charged to all.
- Zone pricing: Prices increase as shipping distances increase.
- Zone pricing is also used to price fares in certain metro stations.
- This amounts to a price discount and is used as a promotional tactic.
- Describe the different types of geographic pricing from a pricing tactic perspective