SRI RAMAKRISHNA MISSION VIDYALAYA

COLLEGE OF ARTS AND SCIENCE

Department of social work
EVENT MANAGEMENT AND SOCIAL
MARKETING
Reg. No. :20PSW025
Topic :SOCIAL MARKETING STRATEGIES AND
APPLICATION
 WHAT IS SOCIAL MARKET
SEGMENTATION ?
Social Market Segmentation
A deliberate and carefully planned attempt at collective change, drawing on an
individual appreciation of different factors that affect behavior, actions, and decisions.
A capitalization of varying strengths, weakness, limitation, and preferences of your
target markets, in achieving a common direction.
An analysis of the part in relation to the whole.
An important part of a social marketing campaign is segmenting your market,
i.e. dividing it into coherent groups, each of which might respond to a different
approach. Creating an approach for each segment of your target audience will make it
more likely that your message will be heard and followed.
 WHAT ARE THE CONTENT OF SOCIAL
MARKETING SEGMENTATION ?
Market Segmentation
 Market segmentation involves dividing a large homogenous market of
potential customers into clearly identifiable segments. Customers are divided based
on meeting certain criteria or having similar characteristics that lead to them having
the same product needs. Segments are made up of customers who will respond
similarly to marketing strategies. They share common interests, needs wants and
demands.
 Segmentation means to divide the marketplace into parts, or segments,
which are definable, accessible, actionable, and profitable and have a growth
potential. In other words, a company would find it impossible to target the entire
market, because of time, cost and effort restrictions.
 The Social segmentation practice generally seeks a group of people
who commonly hold social, cultural, economic or lifestyle traits. In marketing,
social segmentation may be determined by wealth, location, education, age and
sex.

 Geographic – based on land, rural or metropolitan area.

 Demographic – based on age, gender, income, occupation, education,
nationality.
 Psychographic – based on social status, lifestyle-type, personality type.
 Behavioural – based on intensity of product use, brand loyalty, user
behaviours, price sensitivity, technology adoption.
 Demographic segmentation :
 This is the most common type of segmentation. A target audience is
divided based on qualities such as, age, gender, occupation, education, income
and nationality.
 Demographic segmentation is the easiest way to divide a market. Mixing
demographic segmentation with another type of market segmentation can help
to narrow your market down even further.
 The information required for demographic segmentation is easy to gather
and doesn’t cost a company too much to obtain.
 For example, a common product which is segmented based on
demographics is body wash. Generally, you’ll see body wash for women and
body wash for men.
 Behavioural segmentation
 A company can segment their market based on consumer’s behaviours. By
dividing your target audience based on their behaviours allows you to
create specific messaging that will accommodate to those behaviours.
Geographic segmentation
 This involves splitting up a market based on location. Even though this is a
basic form of segmentation it is highly effective. By knowing where a
customer is located can help a company better understand the needs of their
customers and companies can then target customers with location-specific
ads.
 You can divide a segment based on their locations, such as town, county,
zip code or country. But you can also identify customers based on the
climate they live in or the population density of their location.
Dividing a segment based on the characteristics of their location, allows
marketers to be even more specific with their targeting and messaging.
 When targeting different geographic segments, marketers need to take into
consideration elements such as language. Language may change depending on
the region you are targeting.
Psychographic segmentation
 This form of segmentation is very similar to demographic segmentation
however, it deals with characteristics that are related to mental and emotional
attributes.
 Psychographic segmentation divides a group of customers based on their
personality traits, values, interests, attitudes and lifestyles.
 Demographics as we discussed earlier are much easier to observe than
psychographics, however, psychographics give marketers valuable insights
into customers motives, preferences and needs.
 By understanding psychographics, marketers can develop
content that is more relatable to their customer segments.
 Demographic segmentation can merge very well with
psychographic segmentation. If you feel your messaging isn’t
appealing to your demographic segment, you can try including
psychographic information.
 It is psychographic information that informs you why people
purchase or don’t purchase a product or service.
 EXPLAIN THE IMPORTANCE OF SOCIAL
MARKETING SEGMENTATION ?
Importance of social market segmentation:
Market segmentation can help you to define and better understand your target
audiences and ideal customers. If you're a marketer, this allows you to identify the
right market for your products and then target your marketing more effectively.
Market segmentation makes it easier for marketing teams to develop highly targeted
and effective marketing campaigns and plans.
When marketers use market segmentation it makes planning campaigns easier, as it
helps to focus the company on certain customer groups instead of targeting the mass
market. Segmentation helps marketers to be more efficient in terms of time, money
and other resources. Market segmentation allows companies to learn about their
customers. They gain a better understanding of customer’s needs and wants and
therefore can tailor campaigns to customer segments most likely to purchase
products.
 Some of the importance of market segmentation are described below:
1. Co-Ordination of Product and Marketing Appeals – As market
segmentation presents an opportunity to understand the nature of the market, the
seller can adjust his thrust to attract the maximum number of customers by
various publicity media and appeals.
2. Better Position to Spot Marketing Opportunities – As the producer can
make a fair estimate of the volume of his sale and the possibilities of furthering
his sales in the regions where response of the customers is poor.
3. Allocation of Marketing Budget – It is on the basis of market segmentation
that marketing budget is adjusted for a particular region or locality. Specific
budget can be allocated according to different market segments.
4. Meeting the Competition Effectively – It helps the producer to face the
competition of his rivals effectively. The producer can adopt different strategies
for different markets taking into account the rival’s strategies.
5. Effective Marketing Programme :
 It helps the producer to adopt an effective marketing programme and serve the
consumer better at comparatively lower cost. Diverse marketing programmes can
be attached for various segments.
6. Evaluation of Marketing Activities :
  Market segmentation helps the manufacturer to find out and compare the
marketing potentialities of the products. It helps to adjust production and using
his resources in the most profitable manner. As soon as the product becomes
obsolete, the product line could be diversified or discontinued.
 Spotting of opportunities in right time is found essential to influence the target
market. It is quite natural that the needs and requirements of different users living
in different segments, regions are not identical.
 The marketers bear the responsibility of identifying the difference in
preferences so that the strategic decisions are formulated in line with the same.
This helps in sensitising the marketing resources. The marketing inputs are
found instrumental in developing the required marketing outputs.
 We appreciate the crop insurance and cattle insurance facilities for furthering
the interests of the agricultural sector, we feel that the insurance organisations
come to know the changing needs and requirements of the rural sector and
innovate their services/schemes accordingly.
 In addition to the mobilisation of savings, we also need to promote investments.
This requires an overriding priority to the industrial sector or the corporate
sector. The insurance organisations also need to identify profitable opportunities
in the services sector.
 DEFINE SOCIAL PRODUCT
STRATEGIES
Product strategies in social marketing:
 A product strategy is a high-level plan describing what a business hopes to
accomplish with its product, and how it plans to do so. This strategy should answer
key questions such as who the product will serve (personas), how it will benefit
those personas, and what are the company’s goals for the product throughout its
lifecycle.
 Product strategy defines what your product should achieve and how that
supports the organisation, and is brought to life through the product road map.[1] This
strategy outlines the end-to-end vision of the product, particulars on achieving
the product strategy and the big picture context in terms of what the product will
become.
Companies utilise the product strategy in strategic planning and marketing to
identify the direction of the company's activities. The product strategy is
composed of a variety of sequential process in order for the vision to be
effectively achieved. The company must be clear in terms of the target market of
the product in order for them to plan the activities needed in order to reach the
destination and to achieve its goals.
 WHAT ARE THE STEPS INVOLVED IN
SOCIAL PRODUCT STRATEGIES ?
Generating - Using SWOT analysis (strengths, weaknesses, opportunities, threats)
and current market trends to generate ideas. The company may want to develop
several different roadmaps to suit different types of projects along with risks
management involved.
Screening the Idea - Set specific criteria for the product ideas in terms of if it
should be continued or diminished. Will customers in the market benefit from this
product?
Testing the Concept - Using quantitative or qualitative responses to assess
consumer responses to the product idea before introducing the product to the
marketplace.
Business Analytics - A detailed marketing strategy will be included in terms of
whether the product will be profitable in the marketplace.
 This will also include the reactions from the target markets and product positioning to
evaluate if there's demand from the market.
 Marketability Tests - Prototype product will be introduced followed by a test of the
product along with the proposed marketing plan. Modification can be made when necessary.
 Technicalities and Product Development - Prototype will be created in the marketplace
allowing exact and real life investigations, product specifications and any manufacturing
methods. This stage also includes the process of logistics plan, supplier collaboration,
engineering operations planning and quality management.
 Commercialise - Product will be launched into the market alongside advertisements and
other promotions.
 Post Launch Review and Perfect Pricing - Review of the market performance in order to
assess the success of the project on the entire product portfolio. This stage will also include
product costs and the forecast of future profit and revenue, differing price and using
competitive technologies for competition in the market. Value chain analysis will be useful
for this stage of the process.
 DEFINE SOCIAL MARKETING MIX.
The marketing mix is a key component of social marketing providing one of the
differential points in bringing about behavior and social change. There is a dearth of
information regarding the strategies used for the mix in social marketing
interventions.
This systematic review identifies the strategies used in the social marketing mix,
product, price, place, promotion, policy, and partnerships, and their associated
outcomes, in health behavior change interventions.
A systematic literature search was conducted for peer-reviewed articles published in
English from 1990 to 2009 that reported social marketing interventions addressing
disease prevention, cancer, heart disease, diabetes, HIV, STDs, reproductive health,
physical activity, nutrition, and tobacco.
 Articles must have identified at least 3 of the Ps of the marketing mix,
reported the evaluation, and met the 6 social marketing benchmarks criteria.
Twenty-four studies describing 17 interventions met the inclusion criteria.
 The complete marketing mix was identifiable in 5 interventions. Strategies
such as removing perceived barriers, using the Internet for placement,
applying innovative promotion, involving communities, and supporting
policies were identified as current practices.
 The results identified a number of strategies that showed potential for the
marketing mix with important implications for practice.
 EXPLAIN IMPORTANCE OF SOCIAL
MARKETING MIX.
 The 4Ps of marketing is a model for enhancing the components of your
"marketing mix" – the way in which you take a new product or service to market. It
helps you to define your marketing options in terms of price, product,
promotion, and place so that your offering meets a specific customer need or
demand.
Price
 "Price" refers to what the consumer must do in order to obtain the social
marketing product. This cost may be monetary, or it may instead require the
consumer to give up intangibles, such as time or effort, or to risk embarrassment and
disapproval. If the costs outweigh the benefits for an individual, the perceived value
of the offering will be low and it will be unlikely to be adopted. However, if the
benefits are perceived as greater than their costs, chances of trial and adoption of the
product is much greater.
 In setting the price, particularly for a physical product, such as contraceptives,
there are many issues to consider. If the product is priced too low, or provided
free of charge, the consumer may perceive it as being low in quality.
 On the other hand, if the price is too high, some will not be able to afford it.
Social marketers must balance these considerations, and often end up
charging at least a nominal fee to increase perceptions of quality and to confer
a sense of "dignity" to the transaction. These perceptions of costs and benefits
can be determined through research, and used in positioning the product.
Place
 "Place" describes the way that the product reaches the consumer. For
a tangible product, this refers to the distribution system--including the
warehouse, trucks, sales force, retail outlets where it is sold, or places where
it is given out for free. For an intangible product, place is less clear-cut, but
refers to decisions about the channels through which consumers are reached
with information or training.
 This may include doctors' offices, shopping malls, mass media vehicles or in-
home demonstrations. Another element of place is deciding how to ensure
accessibility of the offering and quality of the service delivery. By
determining the activities and habits of the target audience, as well as their
experience and satisfaction with the existing delivery system, researchers can
pinpoint the most ideal means of distribution for the offering.
Promotion
 Finally, the last "P" is promotion. Because of its visibility, this
element is often mistakenly thought of as comprising the whole of social
marketing. However, as can be seen by the previous discussion, it is only one
piece. Promotion consists of the integrated use of advertising, public relations,
promotions, media advocacy, personal selling and entertainment vehicles.
 The focus is on creating and sustaining demand for the product.
 Public service announcements or paid ads are one way, but there are other
methods such as coupons, media events, editorials, "Tupperware"-style
parties or in-store displays.
 Research is crucial to determine the most effective and efficient vehicles
to reach the target audience and increase demand.
 The primary research findings themselves can also be used to gain
publicity for the program at media events and in news stories.
 Product

 The social marketing "product" is not necessarily a physical offering. A

continuum of products exists, ranging from tangible, physical products (e.g.,
condoms), to services (e.g., medical exams), practices (e.g., breastfeeding,
ORT or eating a heart-healthy diet) and finally, more intangible ideas (e.g.,
environmental protection).
 In order to have a viable product, people must first perceive that they have a
genuine problem, and that the product offering is a good solution for that
problem.
 The role of research here is to discover the consumers' perceptions of the
problem and the product, and to determine how important they feel it is to
take action against the problem.
 WHAT IS PRICING? EXPLAIN THE VARIOUS
KINDS OF PRICING STRATEGIES ADOPTED IN
SOCIAL MARKETING PRICING.
• Pricing is the method of determining the value a producer will get in the
exchange of goods and services. Simply, pricing method is used to set the price of
producer's offerings relevant to both the producer and the customer. The price of
similar product/service in the market. 
 Odd Pricing:

 Odd pricing is a pricing method aimed at maximizing profit by making micro-

adjustments in pricing structure.
 It relies on the assumption that consumers are calculation-averse and will
therefore only read the first digits of a price when making their purchasing
decision.
 According to this method, the relevant information of any given price does not
usually relate to the last digits, but rather to the first digits, or in other words, to
the order of magnitude of the numbers.
 Psychological pricing

Psychological pricing is the practice of setting prices slightly lower than a whole
number. This practice is based on the belief that customers do not round up these prices,
and so will treat them as lower prices than they really are.
Customers tend to process a price from the left-most digit to the right, and so will tend
to ignore the last few digits of a price. This effect appears to be accentuated when the
fractional portion of a price is printed in smaller font than the rest of a price.
An example of psychological pricing is setting the price of an automobile at $19,999,
rather than $20,000. This type of pricing is extremely common for consumer goods.
A variation on the concept is to set prices higher, in the belief that customers will attach
more importance to a product if the price is set at a premium level.
 Customary pricing

Customary prices are the prices that consumers are used to paying for certain
products or services over a long period of time.
These prices are known to all customers, and they do not expect them to change.
With this knowledge, e-commerce businesses can carry out a detailed market study.
They can then choose to follow a customary pricing policy with the products or
services that lend themselves to it.
 You can integrate these customary prices into your overall pricing strategy to
aim to achieve the highest possible profit. We explain the advantages and
disadvantages of this type of price and the most typical examples. 
 Prevailing Pricing
• Prevailing Price means the price per share equal to the average of the Daily Market Prices
of Common Stock during the period of forty (40) consecutive Business Days ending on the
date that is three (3) Business Days prior to and excluding the date of the relevant Later
Investment Notice, but not greater than the average of the Daily Market Prices of Common
Stock for any three (3) consecutive or non-consecutive Business Days (determined in
Purchaser’s sole discretion) within such period of forty (40) consecutive Business Days.
• Example : Provided that the Buyer obtains the prior approval of Seller, Buyer may Over lift
an agreed volume and Seller shall supply such agreed volume at the Prevailing Price set out
in the Existing Agreement or, if there is no Existing Agreement, on a price as agreed
between the Parties. In such circumstances, the price payable for the Under Lift will be
calculated using the greater of the agreed fixed price or maximum price for the Fixed Price
Basis Volume (as applicable depending on the type of Fixed Price Basis on which the Sales
Order is made) AND the Prevailing Price.
 • Prestige pricing
• Definition: Prestige pricing is a marketing strategy that involves keeping a high
price for a product or service to communicate high quality or luxury. It is a technique
often employed for high-end products since low prices can be translated into low
quality by target consumers.
• Example : A regular flight ticket with All Start Airlines is priced at almost 200%
more than one from a regular airline. Nevertheless, executives recognize the airline
as a top quality one and they enjoy paying a higher tariff to benefit from the comfort
of flying with them. The company uses prestige pricing as one of the methods to
keep the service exclusive and the quality perception high enough to attract its target
audience effectively.
 • Penetration pricing
• Penetration pricing is a marketing strategy used by businesses to attract customers to
a new product or service by offering a lower price during its initial offering.
• The lower price helps a new product or service penetrate the market and attract
customers away from competitors.
• Market penetration pricing relies on the strategy of using low prices initially to
make a wide number of customers aware of a new product.
• The goal of a price penetration strategy is to entice customers to try a new product
and build market share with the hope of keeping the new customers once prices rise
back to normal levels. Penetration pricing examples include an online news website
offering one month free for a subscription-based service or a bank offering a free
checking account for six months.
 • Skimming Pricing
• Price skimming is a product pricing strategy by which a firm charges the highest initial
price that customers will pay and then lowers it over time. As the demand of the first
customers is satisfied and competition enters the market, the firm lowers the price to
attract another, more price-sensitive segment of the population. The skimming strategy
gets its name from "skimming" successive layers of cream, or customer segments, as
prices are lowered over time.
• Price skimming is a product pricing strategy by which a firm charges the highest initial
price that customers will pay and then lowers it over time.
• As the demand of the first customers is satisfied and competition enters the market, the
firm lowers the price to attract another, more price-sensitive segment of the population.
• This approach contrasts with the penetration pricing model, which focuses on releasing a
lower-priced product to grab as much market
 • Price Lining
• Price lining (also product line pricing) is a marketing strategy where a business
prices its offerings according to the quality, features, or attributes to differentiate it
from other similar offerings.
• In simple terms, price lining is a process of grouping similar offerings under
different price brackets – each varying slightly by the quality features, or attributes
on offer. These brackets usually tend to start low and go higher in price.
• Take Coca-Cola, for example. The company sells different sizes of the same drink at
different prices. It even prices the gift packs differently during festivals.
• Price lining is a marketing strategy even though it has the term “price” in its name.
The main objective of this strategy is to make the offering appeal to a wider range of
customers and eventually boosting sales and audience numbers.
 • Geographical Pricing
• Geographical pricing is the practice of adjusting an item's sale price based on the
location of the buyer. Sometimes the difference in the sale price is based on the cost
to ship the item to that location. But the difference may also be based on what
amount the people in that location are willing to pay. Companies will try to
maximize revenue in the markets in which they operate, and geographical pricing
contributes to that goal.
• Most typically, geographical pricing is practiced by companies in order to reflect the
different shipping costs accrued when transporting goods to different markets. If a
market is closer to where the goods originate, the pricing may be lower than in a
faraway market, where the expense to transport the goods is higher. Prices may be
lower if the goods compete in a crowded market where consumers have a number of
other quality options.
Geographical pricing, in marketing, is the practice of modifying a basic list price
based on the geographical location of the buyer. It is intended to reflect the costs of
shipping to different locations.
There are several types of geographic pricing:
FOB origin (Free on Board origin) – The shipping cost from the factory or
warehouse is paid by the purchaser. Ownership of the goods is transferred to the
buyer as soon as it leaves the point of origin. It can be either the buyer or seller that
arranges for the transportation.
Uniform delivered pricing – (also called postage stamp pricing) – The same base
price is charged to all. Any perceived variance in price results from differences in
delivery costs.
 Zone pricing – Prices increase as shipping distances increase. This is
sometimes done by drawing concentric circles on a map with the plant or
warehouse at the centre and each circle defining the boundary of a price zone.
Instead of using circles, irregularly shaped price boundaries can be drawn that
reflect geography, population density, transportation infrastructure, and
shipping cost. (The term "zone pricing" can also refer to the practice of
setting prices that reflect local competitive conditions, i.e., the market forces
of supply and demand, rather than actual cost of transportation).
 Zone pricing, as practiced in the gasoline industry in the United States, is the
pricing of gasoline based on a complex and secret weighting of factors, such
as the number of competing stations, number of vehicles, average traffic flow,
population density, and geographic characteristics.
Basing point pricing – Certain cities are designated as basing
points. All goods shipped from a given basis point are charged the
same amount.
Freight-absorption pricing – The seller absorbs all or part of the
cost of transportation. This amounts to a price discount, and is used
as a promotional tactic.
 • Dual Pricing
• Dual pricing is the practice of setting different prices in different markets for the same
product or service. This tactic may be used by a business for a variety of reasons, but it
is most often an aggressive move to take market share away from competitors.
• Dual pricing is similar to price discrimination
• Dual pricing is most often an aggressive tactic used by a manufacturer to take market
share away from a competitor.
• In some cases, dual pricing is necessary to offset the additional costs of doing business
in a foreign market.
• Dual pricing is illegal only when it can be proved that a manufacturer set prices
unrealistically low for the purpose of unfairly driving out competition.
 Administered Pricing
An administered price is the price of a good or service as dictated by a government
or centralized authority, as opposed to buyers and sellers interacting according to
supply and demand.
An administered price is one that is decreed by some authority for a good or service,
rather than through a process of price discovery in a free market
Centrally planned governments tend to rely on administered pricing as they reject
capitalism and free markets.
Even in mostly capitalist market economies, some prices are set administratively
such as in the case of rent controls, certain wages, or price ceilings on food items
and basic goods.
 • Monopoly pricing
• Monopoly pricing is a pricing strategy followed by a seller whereby the seller
prices a product to maximize his or her profits under the assumption that he or she
does not need to worry about competition. In other words, monopoly pricing
assumes the absence of competitors being able to garner a larger market share by
charging lower prices.
• Monopoly pricing requires not only that the seller have significant market power,
possibly a monopoly or near-monopoly or a cartel of oligopolists, but also that the
barriers to entry for selling that good are high enough to dissuade potential
competition from being attracted by the high pricing. In particular, monopoly pricing
is infeasible in contestable markets
 Expected Price
Expected Price means the value fixed for the Bid Amount as recommended by the CGD.
Expected Price. ’ under Rule 4120(c)(8)(A)(i) means the Current Reference Price at the
time the Exchange receives notice that the security is ready to trade from an underwriter
or financial advisor.
Examples : Under the price validation test, the System compares the Expected Price
with the actual price calculated by the Cross.
The “Feasible Expected Price and Price Risk Frontier” implies that the retailer must
increase the value σ(Pr) in order to offer a pricing plan with a lower value of E(Pr)
The underwriter shall select an upper price band (i.e., an amount by which the actual
price may not exceed the Expected Price) and a lower price band (i.e., an amount by
which the actual price may not be lower than the Expected Price).
 • Sealed Bid Pricing

• It is a competitive pricing method, in which prices are decided based on

quotation/estimated price or in sealed bids. This method is generally used in
construction/contract business.
• In this, a tender notice is printed in the newspaper. Work proposals, type of job,
quality, duration of project etc. are printed in the newspaper. In reply to the notice,
interested parties send their sealed bid stating their price, particulars before deadline.
• On the due date, submitted sealed bids are opened and allocated to bid at a lower
price with satisfaction conditions. Company sets the price based on how competitors'
costs the product.
 Negotiated Pricing

In a price negotiation or other distributive (single-issue) negotiations, it can often seem as
though the buyer has limited options: accept the price or lose the deal. But sellers also face
the dilemma of losing the sale. In both cases, the obvious BATNA (best alternative to a
negotiated agreement) is to walk away from the deal. 
However, there is almost always room for haggling. Your BATNA also helps you calculate
your reservation price—the highest price you’d be willing to pay in the current negotiation.
Interestingly, research suggests that in single-issue price negotiations, asking a counterpart
to compare your offer to the minimum they’ll accept can help you not only get a great deal
but ensure they’re satisfied with the end result. Offers look more appealing when we
compare them to the least we would accept than when we compare them to the most we
hoped to achieve. 
It’s also important to be polite and cordial throughout the negotiation process, and
be willing to accept no for an answer. 
Effective negotiation strategies in business are critical.
A negotiated market is a type of secondary market exchange in which the prices of
each security are bargained out between buyers and sellers.
 In a negotiated market, there are no market-makers or order matching. Instead,
buyers and sellers actively negotiate on the price at which a transaction is finalized
either directly or through the use of brokers.
These markets are considered very inefficient as the time, effort, and lack
of transparency in pricing are large issues that can't be resolved for this type of
trading.
 Cost Plus Pricing
Cost-plus pricing is a pricing strategy in which the selling price, of goods and
services, is determined by adding a specific fixed mark up percentage to a singular
product's unit cost. Essentially, the mark up percentage is the company's way to
generate a profit margin that reaches their target rate of return and maximises their
overall profits. The mark up percentage can be derived by using the firm's target rate
of return. An alternative pricing method is value-based pricing.
Cost-plus pricing is often used on government contracts (cost-plus contracts), and
was criticized for reducing pressure on suppliers to control direct costs, indirect
costs and fixed costs whether related to the production and sale of the product or
service or not.
Companies must ensure cost breakdowns are deliberately maintained to ensure they
have a comprehensive understanding of their overall costs.[2] This information is
necessary to generate accurate cost estimates.
Cost-plus pricing is especially common for utilities and single-buyer products that
are manufacture to the buyer's specification such as military procurement.
• Step 1: Calculating total cost
Total cost = fixed costs + variable costs
Fixed costs do not generally depend on the number of units, while variable costs
do.
• Step 2: Calculating unit cost
Unit cost = (total cost/number of units)
• Step 3a: Calculating mark up price
Mark up price = (unit cost * mark up percentage)
The mark up is a percentage that is expected to provide an acceptable rate of return
to the manufacturer.
• Step 3b: Calculating Selling Price (SP)
Selling Price = unit cost + mark up price
 EXPLAIN PROMOTIONAL STRATEGIES
IN SOCIAL MARKETING
The promotional strategy will need to take into consideration some or all of the
following:
The purpose and nature of the event.
Targeting relevant industry groups.
Number of participants attending.
Date, time and location of the event.
Providing adequate notice and coverage.
 
Cross Promotions
 
To allocate market resources in the most efficient manner, you must identify
and incorporate marketing partners into your campaign. These organizations
may actually contribute marketing dollars or may provide in-kind services,
such as providing celebrities, tagging their ads with your event date and time,
or contributing other valuable components to your campaign.
 
When seeking marketing partners to develop a cross-promotional strategy,
study the advertising and marketing activities of compatible businesses in
your area. Determine which of these activities will benefit your event. Next,
develop a proposal that clearly describes the resources that you can bring to
the event. Finally, present the proposal to your prospective marketing partners
and answer any questions they may pose.
 Street Promotions
 
This marketing activity requires that you literally take your message to the street. Street
promotions may include the handing out of flyers by a clown in a high-traffic area, the
appearance of a celebrity at a local mall, contests, or other promotional activities
designed to draw high visibility to your event. Before leafleting (handing out flyers),
make certain that this is allowed by local code. You certainly don’t want to generate
negative publicity by having the clown arrested for causing a disturbance. 
A celebrity appearance can help generate significant publicity if it is handled properly.
Schedule the celebrity to include radio and television interviews, appearances at a local
children’s hospital or other public facility, and ceremonial events with local, state,
provincial, or federal leaders. At each appearance make certain that the celebrity is well
informed about the event and articulates your event message in a consistent manner.
Contests and other promotional events also require analysis to ensure that they are within
the bounds of the local code and that they are appropriate for your event. For instance,
selling raffle tickets at a nonprofit event may require that you file legal forms.
 DESCRIBE VARIOUS KINDS OF PROMOTIONAL
STRATEGIES ADOPTED IN SOCIAL MARKETING.

• Promotional strategies are the plans and tactics implemented by brands that want to
promote themselves in the market and increase their sales, drive more revenue,
build brand equity, and build recall for their products and company.
• The applications of promotion strategies are manifold and they can be used in
various methods to achieve different objectives.
• The best part about promotions is that they are versatile. If you are creative, the sky
is the limit.
 Types of Promotional Strategies
Social Media.
There are various platforms online where you can promote your products and
can reach a huge number of audiences.  There is hardly any person who is not
using either Facebook or Instagram. By using this platform, you can make
people aware of your product. You can talk about its uses and how it is
essential for them. In addition to this, you can show people how your product
is better than other similar product. Unlike other promotional strategies which
are blindly pushing their product on everyone. You can make sure that your
product has reachability to your potential customers who have high chances to
get converted. if you don’t believe me. Just go and open your Facebook app.
You will understand what I am trying to say. There are 90% chances that you
will find the advertisement for “Zomato” offering you a 50% discount on your
first order. If you are either feeling hungry or it is 12 pm (lunchtime).
 Mail Order Marketing

Just think that your company is still breathing just because of your customers.
once customers have used your product and liked it, there are chances that they
are going to be connected with you for a long time. Therefore, don’t make a
mistake to overlook these customers. you can ask them to share their personal
details in exchange for free gifts or services. You can use that information to
promote your product in a new market where people are totally unaware of the
existence of your product.
Free Product and sample Giveaways

This promotional strategy is used by both small as

well as powerful companies. By using this strategy,
you can boost the sale of your product instantly. This
strategy is mostly adopted by food or cosmetic
companies. They provide a sample of their products
free of cost and make people try new products. You
must have noticed a small counter of some brand in a
shopping mall which gives away samples of products
to every passer-by or sometimes they ask for personal
details like an email address from people whom they
are giving free samples. Later you can use this
information to promote your product.
 Customer Incentive Referral Program
• This promotional strategy will use your current customers and encourage them to
refer your products or services to their families and friends. You can offer them gifts
or discounts on their next purchase in exchange for their referral. For example,
many e-commerce companies run “Customer Incentive Referral Program” to
increase their customer-base using their existing customers. this strategy is far less
expensive than the traditional style of advertising.
Point of Sale Promotion and End Marketing
• In stores, products are displayed strategically so that they come first in the eyes of
customers as soon as they enter the store. Stores do this for two reasons convenience
and impulse. Many times, you have noticed a rack displaying attractively offers on a
certain product or many products are displayed near the aisle of the store. There are
reasons why stores do this. They do this either to boost the sale of the product or
when they want their stock moving. This strategy makes people buy certain products
impulsive while they wait for their turn to check out.
Branded Promotional Gifts
• This is an effective strategy used by many companies to promote their brand. In this
strategy, rather than handing out the business card they print the business name, logo
and contact information on a functional gift. For example, companies in Japan
distribute millions of napkins with their brand’s name printed on its envelope.
• The logic behind doing this is that people usually discard business card without even
looking at them, however, a napkin is a useful thing people don’t throw it away and
there are high chances that it will stay with the person it is handed to, for a longer
period of time. This is also the best way to keep your customers happy because
people love getting free gifts and a happy customer will definitely bring you more
business.
Causes and Charity
• People want to connect with those companies which are giving back to society along
with providing excellent services. Therefore, many small, as well as powerful
companies, use this strategy to strengthen their customer base. To do this, you need
to tie-up with some charity organization or an NGO and then you can advertise about
your initiative on your social media handles, website, and in your stores so that
people become aware of it and will buy your products to do their bit for the society.
A classic example of this promotional strategy used by a stationery company
“Classmate”. Classmate tells their buyers that they will pay “one rupee” for the
education of unprivileged children for every product bought by you. This strategy
makes the use of emotions of human beings to boost sales. There is no harm to give
a try to this strategy.
 • After-Sale Customer Survey

• Reaching your customers through telephonic calls or emails or text messages to

know about their experience shopping with you does three jobs:
• 1. It makes your customers believe that you care for them.
• 2. It open the doors for promotional activities.
• 3. Your customer’s feedbacks can help you to improve your business.
• During the conversation, you can also educate your customers about the on-going or
upcoming offers on your products and if they are happy with your services then you
can politely ask them to give a positive review online. It will improve the image of
your business.
Customer’s Appreciation Events
This type of strategy involves throwing a small party for your
customers. this small gesture will not cost you as much as
fancy advertisements will cost you, but it will definitely
improve the loyalty of customers towards your brand. You can
also organize small competitions where you can provide gift
hampers to the winner or you can also give them a discount on
their next purchase. To make this kind of event more attractive
you can also offer food items like pizza, soft drinks or some
other snacks. This will attract customers to your store. Make
sure to display products that you want to promote strategically
so that it comes in the eyes of people.
 Throwing contests for promotion

• This type of promotional strategy is quite frequently used by companies to make a

place for their newly launched product in the market. you must have noticed many
bloggers and YouTubers posting about their partnership with various brands and
asking their customers to go do various tasks to get a chance to win the contest.
• In addition to this, companies also offer a certain discount if a customer enters the
code provided by a specific YouTuber or Blogger. Or you can also organize contests
in a traditional way such as organizing a contest in the store and asking customers to
participate to stand a chance to win.
 EXPLAIN ROLE OF GOVERNMENT AND
DEVELOPED ORGANIZATION IN SOCIAL
MARKETING
• Role of Government and Development Organization in Social Marketing:
• One role of government is to correct problems of market failure associated with
public goods, external costs and benefits, and imperfect competition.
• Government intervention to correct market failure always has the potential to move
markets closer to efficient solutions, and thus reduce deadweight losses. There is,
however, no guarantee that these gains will be achieved.
• Governments may seek to alter the provision of certain goods and services based on
a normative judgment that consumers will consume too much or too little of the
goods. Goods for which such judgments are made are called merit or demerit goods.
• Governments redistribute income through transfer payments. Such redistribution often
goes from people with higher incomes to people with lower incomes, but other transfer
payments go to people who are relatively better off.
• Social marketing is sometimes seen as being restricted to a client base of non-profit
organizations, health services groups, the government agency. However, the goal of
inducing social change is not restricted to this narrow spectrum of organizations.
Corporations, for example, can be clients. Public relations or social responsibility
departments may champion social causes such as funding for the arts, which would
involve social marketing.
• Social marketing should not be confused with the societal marketing concept which
was a forerunner of sustainable marketing in integrating issues of social
responsibility into commercial marketing strategies. In contrast to that, social
marketing uses commercial marketing theories, tools, and techniques to social issues.
• Social marketing applies a "customer-oriented" approach and uses the concepts and
tools used by commercial marketers in pursuit of social goals like anti-smoking
campaigns or fundraising for NGOs.
• Social marketers must create a competitive advantage by constantly adapting to and
instigating change. With climate change in mind, adaptations to market changes are
likely to be more successful if actions are guided by knowledge of the forces shaping
market behaviors and insights that enable the development of sustainable
competitive advantages.