Promotion

Date: 2015-10-07; view: 405.

Price

Pricing is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organisation. The remaining 3p's are the variable cost for the organisation. It costs to produce and design a product, it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship. Pricing a product too high or too low could mean a loss of sales for the organisation.

Pricing should take the following factors into account:

1. Fixed and variable costs.

2. Competition

3. Company objectives

4. Proposed positioning strategies.

5. Target group and willingness to pay

An organisation can adopt a number of pricing strategies, the pricing strategy will usually be based on corporate objectives.

We've got a product and a price now it's time to promote it. Promotion looks at the many ways marketing agencies disseminate relevant product information to consumers and differentiate a particular product or service. Promotion includes elements like: advertising, public relations, social media marketing, email marketing, search engine marketing, video marketing and more.

As products move through the four stages of the product lifecycle different promotional strategies should be employed at these stages to ensure the healthy success and life of the product. Stages and promotion strategies employed are as follows:

1. Introduction. When a product is new the organisation's objective will be to inform the target audience of its entry. Television, radio, magazine, coupons etc may be used to push the product through the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial stage.

2. Growth. As the product becomes accepted by the target market (at this stage of the lifecycle) the organisation will employ strategy to increase brand awareness and customer loyalty.

3. Maturity. At this stage of the lifecycle the product will be experiencing increased competition and will need persuasive tactics to encourage consumers to choose their product over their rivals. Any differential advantage/benefit will be needed to be clearly communicated to the target audience.

4. Decline. As the product reaches the decline stage of its life cycle, all the organisation can do is use strategy to remind consumers about the product in a bid to slow the inevitable.