The importance of pricing cannot be underestimated as incorrect pricing can often result in the failure of a business. New businesses often make the mistake of either charging too little or too much for their product pr service. To help you avoid making a pricing mistake, the following section outlines some of the guiding principles for determining price.
1. Perceived value
The customer’s ability and willingness to buy strongly influences the price charged for your product or service. Ability to pay is determined by the customer’s income level and where your product/service ranks on each customer’s level of importance. A customer’s willingness to buy is determined by taste, need and perceived value. Continue reading Key Pricing Factors
Research provides the information to meet the needs of your customers and determine your company’s:
This is an OCR edition without illustrations or index. It may have numerous typos or missing text. However, purchasers can download a free scanned copy of the original rare book from GeneralBooksClub.com. You can also preview excerpts from the book there. Purchasers are also entitled to a free trial membership in the General Books Club where they can select from more than a million books without charge. Original Published by: Estes and Lauriat in 1880 in 465 pages; Subjects: Cookery, American; Cooking / General; Cooking / Regional & Ethnic / American / General; Cooking / Regional & Ethnic / American / Southern States; Cooking / Reference;
Continue reading Marketing Guide Book New Cook Book and Marketing Guide
Once you have determined your market segment(s), you must determine how you will position you products and services to make your customers aware of your offerings.
Positioning refers to how your potential customer views your product or service, often described as the image of the product or service. Your goal is to create an image that places your product/service top-of-mind for your intended customers. There are many ways a firm may position itself against the competition. (One company successfully positioned itself directly against its top competitor by using the slogan, “We’re number two, so we try harder.”) Continue reading Market Positioning
Price is a very important factor in the marketing mix. It affects sales volume, profits, the actions of competitors, and the image of the product/service or store. Proper pricing is a prerequisite of success.
Pricing has two basic functions:
(1) to enable a business to cover costs and make a profit, and (2) to motivate customers to purchase products or services. The marketing function with regard to pricing is to use a marketing mix so the product or service can command the best possible price. The business must be able to prosper and customers must perceive they have received value for their money.
Similar to people, products and services have life cycles. They move from birth, through a period of growth, to maturity, and then level off somewhat before declining toward their demise. The decision on whether or not to produce or provide a particular product or service should depend, in part, on what stage of the life cycle the product or service is in. Some products or services have a short life cycle (pet rocks), while others enjoy more prolonged lives (picture frames). Continue reading Product and Service Life Cycle
The packaging of products has grown in importance over the past decade. Packaging is part of the actual product. Besides being able to differentiate your products from your competitors by using different types of packaging, it is important to be aware of some of the packaging trends that can affect the demand for the products you offer. Due to advancing packaging practices, consumers are demanding more from packaging. Packaging trends include:
- recycled materials used to create the package, e.g. recycled paper;
- packages that are recyclable e.g. bottles, cans;
- more information (demanded by the consumer and government) on the labels; and, Continue reading Packaging and Labelling
There are differing classification schemes that companies may use to help develop a product strategy. Non-durable goods are goods normally consumed fairly quickly such as soap, toothpaste and juice. Durable goods normally survive many uses, such as clothing, automobiles and camping equipment. Services are intangibles and include haircuts, tours and automobile repair shops.
Consumer products can also be classified according to how people buy them. There are four classifications generally used: Continue reading Types of Consumer Products
Looking to the customer for guidance is particularly important when deciding upon the specific product/service to be provided. The product or service offered by the company must be one that meets the needs of the customers, not one that satisfies only the producer. For instance, you may be a lover of blueberry-flavoured milk, but that does not necessarily mean that you should sell it in your store. There may not be a demand for such a product.
Be aware of the “total product concept” or the idea that you are selling more than just a physical product or service. Successful firms sell bundles of benefits, not just products or services. For example, a car dealer does not sell automobiles; the company sells reliable, individual transportation. Anti-lock brakes are a feature of an automobile; but the benefit, the reason that motivates people to buy anti-lock brakes, is safety. Similarly, toothpaste that removes stains (a feature) offers the benefit of white teeth. Continue reading Product (or Service) Strategy
There are four important components of marketing. They are called the 4 Ps – product, price, place and promotion.
Marketing decisions are centered on these variables, which are known as the marketing mix. Poor decisions regarding even one of the 4 Ps can lead to business failure. A more thorough discussion of the Marketing Mix follows.