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PRICE (Marketing Mix Pricing Objectives (:black_small_square: Profit…
PRICE
Marketing Mix Pricing Objectives
:black_small_square: Profit margin maximization
:black_small_square: Market share
:black_small_square: Sales growth
:black_small_square: Survival
:black_small_square: Profit maximization
Different Pricing Strategies
Penetration Pricing
- to gain market share. Goods and services are offered at lower prices than its competitors
Psychological Pricing
- buy products and services based on their emotions rather than logic sense.
Economy Pricing
- set the price as low as possible by keeping the promotional and marketing cost to the minimum.
Price Skimming
- set high prices then gradually decreasing as competitors introduce the same goods in the market.
Premium Pricing
- effective in the initial production life cycle.
Factors Affecting Pricing Strategies
External Factors
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competition
- understand its level in the market
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consumer
- consumer purchasing power & price sensitivity
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economic conditions
- interest rate, inflation, economic boom & recession
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goverment
- controlled economy is to be considered
Internal Factors
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product life cycle
:black_small_square:
marketing objectives
- target market & positioning strategies
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marketing mix strategy
- combination others 4P's
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image of firm
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cost
- should cover fixed & variable costs
the amount of money charged for a product or service
NUR IFFA IZWANI (AP180466)