Strategies for Pricing, Promotion and Marketing Analysis

Strategies for Pricing, progression and trade AnalysisProduct CostLiterature checkWe all be exposed to merchandiseing in one or the other(a) nervous strain everyday. Every time we buy or mapping a produce, go window shopping, watch an advertisement, find a rising mathematical growth or someone telling about it. trade outputs argon very familiar and argon not as narrow as batch generally know. market is not just ad, merchandising or making people buy things they want or they dont. selling infact covers a wide range of absolutely essential c commensurate activities that scram us the products we want them, when we want them, where we want them, with all tuition. (Kotler P and Keller K, 2006)merchandising is the management process that is responsible for breaking, anticipating and satisfying guest requirements profitably. (CIM, 2001)Marketing is the process of planning and executing the conception, pricing, forward motion and distri neverthelession of ideas, tru stworthys and aids to constitute permute and satisfy individual and organisational objectives. (AMA, 1985)A definition that includes the important elements of some(prenominal) the AMA and CIM definitions, but still embraces the evolving relationship orientation is offered by Gronroos (1997).Marketing is to establish, continue and enhance relationship with customers and other phonationners at a profit, so that the objectives of the partners, at a profit, so that the objectives of the parties involved argon met. This is achieved by mutual exchange and fulfilment of promises. (Gronroos C, 1997)Marketing management is the act and science of choosing fanny markets and vanquishting, retentivity and growing customers through with(predicate) creating, delivering and communicating superior customer value. (Kottler.P , Keller.K 2006)Marketing is a management process.Marketing involves management skills, requires planning, analysis, resource allocation, control and investment in pr ice of capital, skilled people and physical resources. It excessively requires implementation supervise and evaluation.Marketing fulfills customer requirement profitablyMarketer has to work inwardly the resource capabilities of the organisation and specifically work within the agreed budgets and execution headings stage for the merchandising function.Marketing identifies and anticipates customer requirements.Marketer creates some assortment of offering only after researching the market and pinpointing exactly what the customer want.Marketing is about giving customers what they wantIt implies a focus towards the customer or end con centreer of the product or service. (Kotler P and Keller K, 2006)Marketing offers and exchanges ideas, goods and services.The idea of selling is an exchange process, organisation offers a product or service and the customer offers a sum of money in return. (Brassington F and Pettit S, 2006)Marketing deals with identifying and clash forgiving an d favorable needs, one of the shortest definitions is meeting needs profitably. (Kotler P and Keller K, 2006)Marketing management tasksCapturing merchandising insightsDeveloping selling strategiesConnecting with customersShaping the market offeringsDelivering valueCommunicating valueCreating long term growth(Kotler P and Keller K, 2006)The marketing ruffle is one of the dominant ideas in modern marketing. Marketing mix consists of everything the firm support do to work the chance upon up for its product. The some(prenominal) possibilities gather into 4 Ps. They be Product, Price, Place and onward motion. The set of manageable tactical marketing tools product, price, place and promotion- that blends to produce the response it wants in the target market.Marketing MixVariety AdvertisingList priceimpartQualityPromotionsDiscountsCoverageDesign individual(prenominal) sellingAllowancesAssortmentsFeaturesPublicity requital periodLocationsBrand observe sway sellingCredit termsInv entoryPackagingTransportServicesWarrantiesTarget Market(Kotler et al, 2001, p98)THE 4 Ps of Marketing The four strategies of the marketing mix (product, price, promotion and place) are interconnected. The marketing mix is one of the dominant ideas in modern marketing. fill in one affects decisions in another. It is the set of controllable tactical marketing tools that blends to give or meet the market needs. Target population mustiness be first selected and then the strategies are applied towards. Marketing mix consists of everything that can influence the demand of the product.PRODUCT- Product can be a tangible object or a service offered by a comp each to the target market. A product can be any physical object, services, person, places, organisation and ideas that are offered to a market for acquisition, attention, consumption or use that satisfies the customer needs or wants. There are assorted product levels depending on the customer value hierarchy, they are core benefit, underlying product, expected product, augmented product, potential product.PRICE Price is the amount of money charged for a product or service rendered, it is also the sum of value that consumers exchange for the benefits of having, development satisfying their needs or wants of the product or service.PROMOTION Promotion are the activities that communicate the merits of the product or service that persuade the target customer to buy them. Special promotion offers the likes of cash discount, rebates, offers etc.PLACE Place is all the activities that a companies carries to make the product reach and available to the market. Place is also the scattering channel and dispersion of the product or service in the around advantageous and best way possible to the target customer. (Kotler et al, 2001, p98), (Kotler P and Keller K, 2006), (Lancaster G and Massingham L, 1993, p100)PromotionThe conference of merits of the product and persuading the customer to purchase is promotion. The b enefits of the product begin to be communicated to the customers for earning profits and gaining exchanges. The process of communicating with various form or promotion mix is cognise as promotion. (Kotler et al, 2001, p98)Promotion mixPromotion mix is the blend of promotional tools, which are, advertising, sales promotion, personal selling, sales force, operate marketing and public relations. These promotional tools are utilize to communicate or spread ken to the customers. These tools pretend divergent characteristics and make ups. Total marketing communicatings programme carried by a company or a business is called the promotional mix. (Kotler et al, 2001), (Michael J. Barker, 2003)AdvertisingAny remunerative form of non-personal communication of ideas or products through the medium or channel like television set, newspapers, magazines, hoardings, posters, radio, cinema etc by an identified grass. Advertising include not only business firms, but also museums, charitable organisations, and Government agencies that direct messages to target publics. Advertisements are efficient way to disseminate messages, whether to establish fault preference or to uprise people. (Kotler. P, p590, 2005)The intention of advertisement is to inform and to persuade. The two basic aspects of advertising are the message that has to be communicated and how to be communicated. (Keith Crosier, 1998a)Personal SellingPersonal selling is one of the effective tools of promotion mix involving an interactive relationship surrounded by the seller and the emptor. It is to a great extent(prenominal) effective in reaching up purchaser preference, conviction and action. (Philip Kotler, 2005, p580 Kotler P and Keller K, 2006, p556)Sales PromotionSales promotion is used for short run effects to upraise product offers and to push drop sales. Through sales promotion, companies get better, stronger and quicker response from the customers. Ex- contests, coupons, premiums, offe rs-buy one get one etc.(Philip Kotler, 2005, p580)Public relation or PublicityIt is to build good relationship between the public and the company by favourable publicity, thereby building send off. Lower in cost compared to advertising. It is most of the times the communication of a product, disfigurement or business by placing development about it in the media without paying for the time or media directly. (Kotler et al, 2001, p690)Direct marketingDirect marketing is an interactive system of marketing that uses one or more advertising media to effect a measurable response or exertion at any location. Direct partnerships with carefully targeted individual consumers to both fix an immediate response and cultivate lasting customer relationships by using telephone, mail, e-mail, internet, fax etc. to communicate directly with specific consumer alternative. (Bennett P D, 1995), (Betts et al., CIM, 1998) (Terance A. Shimp, 1997, p386)Promotion mixAdvertisingBuilds mindfulness, pub lic extraditeation (impersonal) Repetition of scratch sensory faculty and product helps in positioning and build customer trustPersonal SellingImmediate and interactive lots of communication between the buyer and seller, sales call are costly. Communicating complex and deeper product selective information and features.Relationships can be built up important if closing the sale make take a long time.Sales Promotion put forward stimulate sales by targeting promotional incentives on particular products effective short term promotional tool.Public RelationsNews, stories and features are more authentic and credible.Cheap way of reaching more customers if the publicity is achieved through the right media but lose control.Direct MarketingDirect fundamental interaction with targeted individual consumers.Communication can be personalised and activities less megascopic to competitors.(David Jobber, 2001),( William G. Zikmund and Michael dAmico, 1998), Kotler P and Keller K, 2006, p55 5-6)AdvertisingAdvertising is any paid form of non personal presentation and promotion of ideas, goods and services by an identified sponsor.(AMA, 1963)Advertising is the non-personal communication of marketing related information to a target audience, usually paid for by the advertiser, and delivered through the mass media in vow to reach the specific objectives of the sponsor(Burnett, 1993)Advertising Its role and structureDevelopments in magazines, radio and television have had a tremendous impact of advertising. apart from marketing, advertising whitethorn also serve several other functions in the preservation and in the society. (Bovee C. L and Arens W. L, 1992)A hierarchy of effects impersonate proposes that ads can move consumers closer to buying step by step, from macrocosm unaware, to knowledge, to liking, to preference, to desire, to purchase.The basic functions of advertising are-Precipitation- perform consciousness and stimulate needs and wants.Persuasion- gain action and commitmentReinforcement- Support customers past decisionsReminder- Create habitAdvertisings have the ability to add value to the snitch as they are capable of endowing a brand with a symbolic heart that makes more value in the consumers eye. (Kotler P and Keller K, 2006, p556)Advertising performs the communication function of a company, which the company has faith on. The main function of advertising are informing, persuading, reminding, adding value and assisting other company efforts.Informing Advertising makes consumer aware of brands, new brand, educates about the features and benefits, builds brand image or forming o it by reaching the mass audience at a low cost per head. It also increments demand for existing product, teaches new uses of product and awareness.Persuading Advertisements persuades or purify to push the consumers and customers to try the advertised products and services. At chances there is also demand created for the secondary product of the brand .Reminding Advertisements make the brand memorable by recalling them, they also remind customers of their purchases, influences the consumers interest in mature brand bears influence on brand switchers by letting them know about the other.Assisting other company efforts Advertisement assists other company efforts by carrying the information or spreading the awareness of sales promotion to consumers(coupons, offers). It also helps the consumers in recognising the product or brand by showing the packaging and design on television, hoardings and magazines. (Shimp T. A., 2000)Advantages of advertisementsAdvertising provides an introduction to the company and its productsAdvertising explains the products new featuresAdvertisements are more economicalAdvertisements offering brochures generate leads to sales peopleAdvertisements tell people how to use the products and make them aware of their right purchase. (Kotler P and Keller K, 2006, p556)Advertisings have the content to compliment th e other promotional mix elements, like- Delivering sales promotions directly and supporting them indirectly, carrying public relations messages and announcing public relations activities, it also presells the salespersons product. Thereby advertising increases sales and profitability. (Burnett, 1993)The economic impact of advertising can be linked to the opening shot in billiards, a range reaction that affects the company that advertises as well as its competitors, customers and the business community. On the otherside or broaderscale, advertising is often considered the trigger on mass distribution system that enables the manufacturers to produce the products in high volume, at low prices, alike(p) theatrical role. Advertising adds value to products, makes products more or less dearly-won, affects total consumer demand, encourages or discourages competition, narrows or widens consumer choice and affects national business cycles.Advertising influences in an economy that produce s more goods and services that can be consumed. (Bovee C. L and Arens W. L, 1992). Advertising is expensive and its effects are uncertain, moreover sometimes it takes time to impact on consumer behaviour.Functions and effects of advertisements as a marketing toolTo stimulate the distribution of a productTo lower the overall cost of salesTo build brand preference and loyaltyTo identify products and particularise them from othersTo communicate information about product, its features and its location of saleTo induce consumers to try new products and to project reuse. (Bovee C. L and Arens W. L, 1992)The magnitude of advertisingAdvertising is a big business. regular armys expenditure on advertisements alone total to 200 zillion dollars as of 1998. Some American companies invest more than 1 trillion dollar a year on domestic product. (Coen R. J, 1997)Advertising is investment in brand impartiality bankBrands legality is enhanced by marketing communications that create brand awaren ess thereby leading to strong, favourable and unique relation in the consumers memory between brand, feature and its benefits. (Aaker D. A., 1993). A brand is differentiated from rivalrous offering from price competition. (Boulding W, 1994)Advertising affects on building brandsAdvertising helps to build brands by communicating value and adding personality. It is only advertising that can do this task well. Advertising is essential to build consumer perception of brand value in market. (Randall, 1994, p 16)Advertising cannot be evaluated separately and it is an extricable part of total brand.The sales of brand are associated with the advertising expenditure as they are directly proportional. Advertising takes the sales up and down with the increase and decrease with proportion to the communication spread to the consumers of the market. Mraket have instinctive and redress feeling that the brand is the most valued property that evaporates unless supported by rights by investment in advertising. (Arnold, D 1993)BrandA brand is a stir, term, sign, symbol or design or combination of them think to identify the goods and services of one seller or group sellers and to differentiate them from those of competitors.-American Marketing AssociationUltimately, a brand is something that resides in the mind of customer.A brand is every sign that is capable of distinguishing the goods or services of a company.In this definition, the stress is on sign and distinguishing. A sign may be a word, picture or form mark. The brand name is that part of the brand that can be pronounced. A brand name can serve as a characteristic in the erudition of the branded article.(Riezebos.R et al, p-33,63,85, 2003)Brands are fundamentally important to the survival and success of many firms for which companies have to manage them correctly. Strong brands are powerful and profitable in so far there are many challenges and threats continuing strength and their existence.Branding is a fundamenta l strategic process that involves all parts of the firm in its delivery. Brand must always deliver value which must be defined in consumer terms. Brand has a continuing relationship with its buyers and users, this may change overtime but the company should always work on it to maintain it.Branding must be continuously adapted so that it is both efficient and effective due to the threat of growing competition. (Randall G, 2000, p1-5)The connection of Zippo lighters, Swatch watches or Mont blanc pens. With all the views it feels that a brand is something different from a product. When pure first started, it sold music as a product. Later the saturated brand was built up and now is in various field like airlines, cola, railways and financial services. It is now definitely a brand.A brand has an existence that is more than an actual product or service, it has a flavor of its own that feeds on the cowcatcher product but also carries its original determine and identify into new produ ct areas.A product is something that is make in factory and brand is something that is bought by a consumer (Randall G, 2000, p1-5)It is every human beings nature to invent and build brand values in each individual head. We do it with people, we do it with animals and we do it with dyspneal objects. The skill of brand management is to see that each consumer is offered the right new(a) materials from which he or she will build the brand as the brand owner would prefer.(Randall G, 2000, p1-5)A brand is not an objective fact, it is made up of a million or more individual and subjective assessments. (Bullmore, 1999)Hankinson and Cowking (1993) have described brand definition under six headingsVisualperceptualPositioningAdded value signPersonality(Hankinson, G and Cowking, P,1993)Brand Image and Brand IdentityBrand image- Brand image is what exists in the minds of consumers and the wide-cut information of the brand they have received by word of mouth, advertising, packaging, experienc e, service etc. modified by perception, previous beliefs, social norms and forgetting. Brand image is what exists.Brand individuality- Brand identity is what is under control and what is transmitted to the market. A strong brand is one that has a consistent, coherent identity. (Randall G, 2000, p1-5). Brand identity consists of twelve dimensions organised around four perspectives- the brand as product(scope, attributes, quality or value, uses, users, country of origin), brand as organisation (organisational attributes, local versus global), brand as person (brand personality, customer relationships), and brand as symbol (visual imaginativeness and heritage). (Randall G, 2000, p68)As per Randall, (1993) brands perform five man functions for consumers.Identity- Brand must identify itself distinctly and unambiguously, so name, legal protection and design elements are important. written summary- The identity should act as a summary of all the information the consumer holds about the b rand.Security- Brand should guarantee to provide the benefits expected.Differentiation- The brand must clearly differentiate itself from its competitors and shows its uniqueness.Added value- Brand must offer more than the generic product. (Randall, G, 1993) bingle more view of brand is to excel in their offering product like price such(prenominal) as Asda, functional benefit such as Toyota or psychological benefit such as Timotei. (Davidson, H, 1997)When prevalent Motors (GM) and Toyota both marketed a car produced by them in joint imperil and cars were functionally identical but were branded as Toyota and Geo Prizm. In the family of 1990-94, Toyota were able to sell 200,000 Corollas at US $ 11,000 each and GM were able to sell only 80,000 and that to with a lower price of US $ 10,700. This shows the greater power of the Toyota brand over the other. This shows the perception of quality in consumers mind with respect to brand. (Almquist et al, 1998)Brands in TakeoversNestle made a putsch bid for Rowntree at a premium due to the brand equity or value by Rowntree. The premium was not paid for the present performance of the brand but for their future potential. Nestle made kitkat the truly European brand.Brand EquityBrand equity is a set of liabilities and assets which are attached to a brand, its value, name, symbol of a company to that of the customers. They are grouped under five categories.Brand loyaltyName awarenessPerceived qualityBrand association in addition to comprehend qualityOther proprietary brand assets-patents, trademarks, channel relationships etc. (Aaker D A, 1991, p8)Celebrity Endorsements (Brand Ambassadors)Celebrities are individuals who enjoy public acknowledgment by a large share of a certain group of people. Their attributes like attractiveness, skills, incomparable lifestyle are observed, They also differ from the social norm and take pleasure in a high degree of public awareness. hardly a(prenominal) gradationic examples of celebri ties like, Meg Ryan, Pierce Brosnan, models like Naomi Campbell, Gisele Buendchen, sports persons like Anna Kournikova, Michael Schumacher entertainers like Oprah Winfrey, Conan OBrien, and pop stars e.g. Madonna, David Bowie, Britney Spears and Rihanna and also business class or groups like Donald Trump, peckerwood Gates or politicians like Bill Clinton, Tony Blair. Appearances of celebrities are in different ways. Initially, when they appear in their actual profession (tennis players in Wimbledon) like Anna Kournikova Pete Sampras. Later, their appearance in public by attending special eminence events like world premieres of movies and academy awards, in news, magazines provide information on events and the personal life of celebrities through mass-media. Celebrities act as spokespeople in advertising to promote products, services and ideas. (Kambitsis et al. 2002, Tom et al. 1992).Celebrities like Britney Spears, Michael Jackson, Liz Hurley and Tiger Woods are paid billions o f dollars for every contract with the company or brand as they play a major role in advertising industry. (Daneshvary, Rennae and Schwer, 2000, Kambitsis et al. 2002). For example, Famous Tennis player Venus Williams has been endorsed by the sportswear manufacturer Reebok International Inc. for $40 million and five year contract. Advertising with the use of celebrities create terrific publicity and attention of people. (Ohanian 1991)Celebrities as SpokespersonsSpokespersons are generally used by companies to deliver their advertising message and convince consumers of their products or brands. Spokesperson who are popular and are widely known are endorsed by companies, thereby reputation endorser (Tom et al. 1992). A celebrity endorser is an individual who is known by the people for their achievements in their fields other than the product class endorsed. (Friedman and Friedman, 1979, p63). Actress Catherine Zeta-Jones endorses the perfume manufactured by Elizabeth Arden (cosmetic manufacturer). Celebrities are endorsed due to their high authoritative potential capability and their higher recall and degree of attention in advertising. Advertising with celebrities create positive feelings towards brands, more entertaining and increases companys awareness, Advertising with celebrities are likely affect consumers brand attitudes and purchase behaviour. (Solomon 2002) beginning Credibility and AttractivenessThe main intention of advertising is to persuade customers, start to modify or change consumers attitude towards brands (Solomon 2002). Celebrity moment strategy by advertisers enables to project an image in terms of persuasiveness, objectiveness, expertise, and trustworthiness. (Till and Shimp 1998). kickoff attractiveness- It is the endorsers individuality, physical appearance, likeability, and similarity to the consumer perception, thereby to the perceived social value (Solomon 2002). Using celebrities or attractive people in television and print adverti sing is common practice followed and have proved to be more successful in influencing customers attitudes and beliefs. (Ohanian 1991)The Match-up shotMany research studies have showed the relativity between brand and celebrity endorsers and explained the effectiveness of using them to promote brands. Many of the celebrity endorsements proved to be successful. (Walker et al. 1992).Celebrity EndorserCompany/Product Success(Yes/No)Liz HurleyEstee LauderYesCindy CrawfordRevlonPepsiCoYesYesBruce WillisSeagramsNoMichael JordanNikeWorldComYesNoWhitney HoustonATTNoJerry SeinfeldAmerican ExpressYesMilla JovovichLOrealYes(Successful and unsuccessful celebrity endorsements Source, Walker et al. 1992, Till 1998)It is not enough for a person to be just famous to endorse (Solomon 2002). Super stars like Bruce Willis and Whitney Houston who were attractive failed in their endorsements. Celebrity spokespersons should be knowledgeable, experienced, and qualified to talk about the product to be effe ctive on consumer. 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