Category: Business

The factors affecting pricing decisions are varied and multiple. Basically, the prices of products and services are determined by the interplay of five factors, viz., demand and supply conditions, production and associated costs, competition, buyer’s bargaining power and the perceived value. We would like to divide them as Internal Factors and External Factors. Internal Factors: 1. Marketing Objectives and Pricing Objectives: Pricing objectives may be as stated earlier – profit objectives (return on sales investment and maximisation of profits), sales objectives (increasing sales volume and increasing market share) and maintenance objectives (price stabilisation and matching the competition). Various pricing objectives have important implications for a firm’s competitive strategy. Pricing objectives must not be in conflict with the marketing objectives of the firm. Image Source: saylordotorg.github.io 2. Marketing Mix Strategy: ADVERTISEMENTS:…

7 Important Segmentation Strategies are described below: 1. Mass Marketing Strategy: When differences in customer needs are small or demographics are not distinctive, a business may decide to use a mass market strategy or ‘undifferentiated marketing’. The firm ignores any segment differences and design a single product-and-marketing programme that will appeal to the largest number of consumers.It means to offer a single product/service/idea across different market segments. It is also known as undifferentiated marketing. Coca Cola, Caterpillar, Sony, Marlboro, Philips, Toyota, McDonald’s, Volvo and Kodak use global marketing strategy. However, these companies do modify their products and communication. The primary purpose of this strategy is to capture sufficient volume to gain economies of scale and a cost advantage. Image Source: lotempiolaw.com ADVERTISEMENTS: If separate products and programmes are designed for…

Value Durability (that a product will continue to maintain its value over time): It may be due to two reasons: Products designed with current fashions in mind and may lose value quite immediately when it goes out of fashion; and the other where goods are manufactured with cheap inputs. Image Source: blackline-house.comIt raises the ethical issue of manipulating customers and thereby exploiting. Safety: ADVERTISEMENTS: Products like tobacco, gutka, pan masala, junk food, or machinery that can injure a person, as well as pesticides, poisons, firearms, and explosives pose safety risks. Caveat emptor does not apply in case of cars, computers, cellphones, or medicines we buy. In case of Chinese goods, the marketer gives no warranty, what to talk of guarantee. Marketers must exercise due care in their production and marketing…

With urban market showing signs of saturation, companies are excited about the potential of rural India.Some major companies that have focused in the rural sector are Philips, Parle, Proctor & Gamble, Colgate-Palmolive, Godrej, Bajaj Auto, TVS, Atlas Cycle HUL, and Dabur. But now every company feels that road to success passes through rural markets. ADVERTISEMENTS: Following reasons indicate the potential of rural markets: 1. Large Population: According to 2011census rural population is 68.84% of total population and it is scattered over a wide range of geographical area. Image Source: i.huffpost.com 2. Rising Rural Prosperity: Average income level has improved due to modern farming practices, contract farming, industrialisation, migration to urban areas and remittance of money by family members settled abroad. The urban-rural disparity ratio has declined greatly. The rich segment…