Price Strategy Reflecting Organisations Objectives And Conditions Marketing Essay

This report will contain information on the strategies used in setting out the price of the products or services that reflect an organisation's objectives and market conditions. How promotional activity is integrated in achieving marketing objectives and the impact of additional components of the extended marketing mix for this company. Also the report will explore more on the extended marketing mix to different contexts and the difference between international marketing and domestic marketing.

PRICE STRATEGY REFLECTING ORGANISATION'S OBJECTIVES AND MARKET CONDITIONS

INTRODUCTION

Price is charge of something set up for a product or services. Principles of Marketing 5th European pg 639. Pricing is worth focusing on and the most difficult part in the element of the marketing mix. If the purchase price is set out correctly in the market contributes to good returns which is profit and organisations can sustain their position on the market, though pricing strategy can change it proceed through its life cycle. When prices are lay out too much or too low could lead to the company in which to stay the market or driven. Price battle, forces companies to put more effort in order to attain the sales volumes necessary to break even. There are different strategies that can be used in setting out the price tag on the products or services the following.

PENETRATION PRICING

This is the process of setting price of products in a minimal price in order to defeat your competition by gaining market share, expanding the marketplace also can be utilized by new companies to enter the market. Companies such as Pound land, Iceland, Primark etc set up this kind of strategy they have a management which is focused on expand its market. Woolworth set its products to low prices as there price strategy resulted to their downfall on the market. The impact of this pricing strategy is the fact that normally revenues are less due to price been low and they can't increase their prices because of the nature of the business itself when it entered the marketplace with good deal.

SKIMMING PRICING

The price strategy which aim to target the market by selling their products at higher prices example Jaguar cars, Gucci, Versace etc this strategy is normally been adopted by the firms who produce their own products and make use of it when introducing new product on the market to make returns before competition become tense. Sony company uses this strategy regularly with their products such as HDTV that was sold in high price of $43, 000 for 40-inch HDTV in Japan in 1990 few people manage to afford, they later decided to reduce their prices to be able to get new customers. The marketplace condition because of this skimming is the fact that the products should be of good quality that can link with the purchase price.

SATISFACTORY RATE OF RETURN

Small family business or retired consultants are the ones who utilize this kind of strategy in pricing their products or services with their business for the intended purpose of earning nominal rates. They would like to get good return out of it without interest of going beyond that amount gained using cost-cut policy.

DIFFERENTIAL PRICING

Companies sometimes tend to have differential strategy were they generally have different price of products or service in the market, they have put in place demand-oriented policy were demand trend is evaluated effectively basing on the way they have segmented their market that needs to be dissimilar to other markets for targeting certain customers. Exemplory case of this is found in the international markets were prices are not the same in the market that organisations need to take into consideration the economic condition, rules and regulations, competitive condition etc. Types of the companies are Renault, Samsung, and Philips etc. The Organisation objective is gain high market share in developed countries or may aim at getting more customers in developing area.

INTERGRATION OF PROMOTIONAL ACTIVITY TO ATTAIN MARKETING OBJECTIVES

In order to make promotional activity to reach your goals marketing objectives must be taken into consideration. Marketing objectives are the strategic plans put in place by the organisation and they should be systematic, measurable, achievable, realistic and time-bound (SMART). McKay (1972) suggested that marketing objectives is all about extending the market, increasing the volume of market share and increasing profitability. Ansoff (1968) argues that marketing objectives is about discovering the right product and market either services or already existing on the market. Gultinan and Paul (1988) saying identifying marketing objectives certain factors is highly recommended such as increasing marketing share, maximising cash flow, positioning the business at the right place.

Promotional activity (mix) can even be referred as marketing communications mix which made up of different activities involved in it such as advertising, sales promotion, pr and personal selling.

ADVERTISING

This is the process of paying something for time spent and space occupied to the media but advertising organisation will not own it. Types of advertising are internet, print, radio etc. The marketing department including operational manager are responsible to make sure they are creating a product of good image and quality that attract customers. Advertising should be planned properly for the intended purpose of targeting certain market, an organization may be losing customers may be due to the image of the merchandise once they change the advert to certain extend it might attract more new customers Example of the business is Guinness.

PUBLIC RELATIONS

Is just how of fabricating a good relationship with the company's various publics and stakeholder of organisation, this is by having good corporate image, handling or avoiding rumours, stories and events. Examples of pr are press releases, sponsorship, special events etc. An image of the company is the one which attract the general public, whether it could be good or bad they have to represent themselves to the public in a certain way that the general public could believe in them. Company's decisional planning the highest level need to consider which method they can apply to gain publicity.

SALES PROMOTION

Its different activities involve of doing aggressive sales to capture more customers as possible in which can be done through media, freebies, providing vouches, direct selling etc. This technique will often create problems to the company by creating an image to the customer of having promotions regularly customers may decide to join their competitors, due getting bored of same activity. Sales promotion should be achieved on daily basis it ought to be planned for specific time with regards to the season too this is described cloth retail shops.

PERSONAL SELLING

A one to one sale of item or service to the customer for the intended purpose of making profit. An individual can be considered a shop assistant, or executives. Selling small or big items, taking orders, dealing with the till, collecting payment that could be inform of cash or by bank card.

IMPACT OF ADDITIONAL COMPONENTS OF THE EXTENDED MARKETING MIX FOR THE UNILEVER PLC

Unilever is one of the world's leading suppliers of consumer goods having mix of products such as food, home care, and personal care with the mission of continuing making products of good brands and quality that touches lives of people over 2billions. Products in Unilever plays the role in the extended marketing mix that influence online marketing strategy of the merchandise. Kotler and G. Armstrong defined marketing mix as a controlled combination, whereby different methods are being used to meet customers' needs and wants. The extended marketing mix is people, processes and physical evidence.

PEOPLE

In marketing people are trained and motivated in the organisation how to market the merchandise or services this is within terms of good customer services and attitude towards the customer, as the marketing environment is highly competitive staff have to make a good image to the customers absence compared to that the business may lose it's customers.

PROCESSES

There are certain techniques marketers use to meet customer needs, organisations have different varieties of meeting the customer needs example they can create the policy of returning goods, club cards, making queries etc, this creates a good relationship with customers when they believe that their needs have been met.

PHYSICAL EVIDENCE

These will be the things that customer can sees and attracts them to obtain such items from the shop, this may be the image of the merchandise, shop outlet, customer service, music played in the shop, staff appearances etc.

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