Marketing paper

Chapter 11

Setting the Price

Pricing Objective: survival, is it valuable, what makes it different, maximum market share, maximum market skimming

Pricing strategy

Determining Demand: est demand curves-surveys, price experiments; price elasticity of demand

Estimating costs

Selecting a price method: perceived value pricing- based on buyer’s image of product; value pricing; EDLP-high/low pricing; going rate pricing

Selecting the final price: impact of other marketing activities; company pricing policies

Marketing channels and value networks- a market channel system

· The particular set of marketing channels a firm employs

· Push vs pull strategy

Marketing communications

The means by which firms attempt to inform, persuade, and remind consumers about the products and brands they sell.

Marketing Communication Mix

Advertising, sales promotion, events and experiences(making customers involved), public relations and publicity (out of the ordinary), online and social media marketing, mobile marketing, personal selling(know how to use each and show)

Developing effective communications

Message strategy-What are going to say? Positioning statement turn it into consumer friendly words

Creative strategy- How are you going to do it? What is it going to look like

Message source- Who is going to do it?

Online marketing

Advantages

· Can offer or send tailored information/messages

· Can trace effects/clicks on page/ad

· Contextual placement

· Can lace advertising based on search engine keywords

Disadvatages

· Consumers can screen out most messages

· Ads can be less effective than they appear(bogus clicks)

· Lost control over online messages via hacking

Communications Options

Web sites (what is the purpose, be detailed, user friendly, physical attractiveness)

Search ads (paid search or pay per click ads, search engine optimization)

Display ads

emal

Find online communities that what to socialize.

Networking events

Word of mouth

Face to face and phone

Online: Viral marketing

Direct marking

Direct mail: choose objectives, target markets and prospects, offer elements, test elements)

Catalog

Telemarketing

Socially Responsible Marketing

Effective internal marketing must be matched by a strong sense of ethics, values and social responsibility

Companies need to understand the social pressures and opportunities facing their companies as they make decisions about investing in social responsibility.

Cause-Rated Marketing

Links the company’s contributions toward a designated cause to customers engaging directly or indirectly in revenue-producing transactions with the company

Is part of corporate societal marketing(CSM)