 Mischelle Martis 19

 Namrata Somani 20
 Nilesh Limaye 21
 Nehal Maniar 22
 Pooja Parihar 23
 Paresh Jadhav 24
 Meghna Joshi 18
 Pricing is an important component of an enterprise's
business processes and financial performance.

 Pricing is the process of determining what a

company will receive in exchange for its products.
 Manufacturing cost,
 Market place,
 Competition,
 Market condition,
 Quality of product.

Effective price is achieved after

accounting for discounts,
promotions, and other
incentives.
 Maximize long-run and short-run profit
 Increase sales volume (quantity)
 Increase monetary sales
 Increase market share
 Company growth
 Discourage new entrants into the industry
 Match competitors prices
 Survival
 Be perceived as “fair” by customers and potential customers
 Create interest and excitement about a product
 Discourage competitors from cutting prices
 Use price to make the product “visible"
 Build store traffic
 Social, ethical, or ideological objectives
 Get competitive advantage
 Obtain or maintain the loyalty and enthusiasm of distributors and other
sales personnel
 Enhance the image of the firm, brand, or product
 Competition-based pricing
EXAMPLE: Best Buy

 Marketing Skimming
EXAMPLE: Luxury Items - digital TV, MP3 players

 Market Penetration
EXAMPLE: collectors magazines

 Price Bundling
EXAMPLE: Croma, Fast Food Restaurants.
 Multi-Unit Pricing
EXAMPLE:

 EDLP
EXAMPLE: Wal-Mart, Big Bazzar

 Odd Pricing
EXAMPLE: Rs.399,Rs.199

 Single Pricing
EXAMPLE: Dollar Shops
 Promotional pricing
EXAMPLE: Big Bazzar, ebay.com

 Multi Pricing
 Promotion involves disseminating information about a product, product
line, brand, or company. It is one of the four key aspects of the
marketing mix.
 Promotion is the communication of information about goods, services,
images and/or ideas to influence purchase behavior

Promotion is generally sub-divided into two parts:

 Above the line promotion: Promotion in the media (e.g. TV, radio,
newspapers, Internet and Mobile Phones) in which the advertiser pays an
advertising agency to place the ad
 Below the line promotion: All other promotion. Much of this is
intended to be subtle enough for the consumer to be unaware that
promotion is taking place. E.g. sponsorship, product placement,
endorsements, sales promotion, merchandising, direct mail, personal
selling, public relations, trade shows
 Goals are stated in specific and measurable terms. Positive
word of mouth (WOM) is an important long-term goal.

An overall promotion budget is set on the basis of one of
these techniques: all you can afford incremental, competitive
parity, etc.

The promotional mix is outlined, based on the firm’s budget,
the type of retailing involved, the coverage of the media, and
the hierarchy of effects.
 The promotional mix is enacted. Included are decisions
involving specific media, promotional timing, message
content, sales force composition, particular sales-promotion
tools, and the responsibility for coordination.

The retailer systematically reviews and adjusts the
promotional plan, consistent with its preset goals
 To built awareness.

 To create interest.

 To provide information.

 To stimulate demand.

 To reinforce the brand.

 Advertising
Advertising is a form of communication used to influence individuals to purchase
products or services or support political candidates or ideas.

Advertising is bringing a product (or service) to the attention of potential and current
customers.

Advertising is focused on one particular product or service. Thus, an advertising plan

for one product might be very different than that for another product.

Advertising is typically done with signs, brochures, commercials, direct mailings or e-

mail messages, personal contact, etc.
 Modes of Advertising
Television
Radio
Cinema
News Papers
Magazines
Outdoor
Yellopages
Carry bags
T-shirts
Internet
Video Games
 Importance Of Advertising

Builds awareness of products and brands

Creates a brand image
Provides product and brand information
Persuades people
Provides incentives to take action
Provides brand reminders
Reinforces past purchases and brand experiences
 Public Relation
Public relations includes ongoing activities to ensure the overall company has a strong
public image.

Public relations activities include helping the public to understand the company and its
products.

Often, public relations are conducted through the media, that is, newspapers, television,
magazines, etc.

Public relations is often considered as one of the primary activities included in

promotions.
 Public relation can be done through:

Media Relations
Media Tours
Newsletters
Special Events
Speaking Engagements
Sponsorships
Employee Relations
Community Relations and Philanthropy
A sales promotion can be defined as a paid non-
personal form of communication, that incentives
customers to visit a store and/or purchase
merchandise during a specific period.
 To stimulate trial purchases.

 To encourage repeat purchases.

 To encourage larger purchases.

 Introduce a new brand/product.

 Counter competitor’s strategy.

 TYPES OF SALES PROMOTION

Multiple purchase offers,

Frequent-user incentives

P-O-P material

Product placements/tie-ins
 TYPES OF SALES PROMOTION

Product sampling, demonstrations

Coupons, refunds

Rebates

Contests, games & sweepstakes

 Advantages:
 Attract customers
 Short-term sales increase
 To liquidate slow moving stock
 Increase turnover
 Sales Promotion

Disadvantages:
Only short-term
Hidden costs
Confusion
Price cutting -Brand image
Lack of effectiveness sometimes
 Jaldi.com – Puzzle Contest

 Dangdang.com – Lucky Time Activity

 Dangdang.com – Membership Card

 ebay.com, indiaplaza.com - Coupons

Get Lucky & Win…..

TATA INDICA XETA

TRIP TO
THAILAND AND
GOA
Exchange Offers

Exchange
Offer
Buy Scratch Win
 Customer Loyalty Program (Membership
Card).

 Crowning contest.

 Kids Painting competition.

 CLP involves issuing of membership cards
which helps a retailer to retain its customer
for a longtime. MAX issues such type of card
on purchase of Rs.999.
 Crowning contest
This was a contest organized by MAX for kids.
Wherein the kids could try MAX clothes, wear a
crown and take photographs with cartoons -
MICKEY and DONALD.
This was a competition organized by MAX for kids.
Kids were provided with free drawing materials and
allotted an hour to paint a picture of their choice.
The winners were given Gift Vouchers worth Rs.
399
Presentation of merchandise to the customer in a visual way.
 This gives customers a firsthand view of the product
 To sell goods

 To show new uses for products

 To introduce new goods

 To build prestige and goodwill

 To show proper care of merchandise

 To suggest merchandise combinations

 Window display

 Interior display

 The trend away from window

 Point of purchase Display

 Industrial and Exhibition Visual Merchandising

 Too much quantity on display

 Inadequate Display

 Confusing Display

 One product category overshadowing the other

 Color distortion in the store leading to consumer grievances

 Personal selling is paid form of personal
advertising, where salespeople assist customers in
satisfying their needs through person-to-person
exchange of information.
 Prospecting
 Approach
 Sales Presentation
 Handling objections
 Close
 Post sales follow -up
Direct Marketing is
the process by which
a firm approaches its
customers on one-to-
one basis and
markets its products
directly to them.
 Mail Order Marketing/Catalogue Marketing

 Direct Mail Marketing

 Telemarketing

 Teleshopping

 Online Marketing
Thank you