Considering the expenditure effect, consumers tend to choose alternative options if they feel the price is high and unaffordable. Soft drinks are usually priced on similar lines, unlike healthcare products. Consumers unwilling to spend more money on healthcare products, which are occasional requirements and are often unplanned in their expenditure, tend to consider price before choosing the product. Considering the shared-cost effect, consumers look for external financial help to buy specific product, especially health care product, through insurance and other means. When they can aid their health care expenses through insurance, they do not feel the pressure of high pricing. The Price-Quality effect plays a major role in choosing specific pharmaceutical products as it is associated with their psychology. If consumers had earlier had good experience with certain medicines, then fluctuating or increased price will not be a deciding factor in purchasing the same product once again. Unique value effect that consumers experience with some treatments or medicines make the consumers less sensitive to products price because the differentiating value of the products become more important. Most consumers prefer their health and well being to price or expenditure, when in grave need for betterment of health. Channels of different lengths and intensities may be used to reach maximum consumers and obtain large market share. For instance, intensive channels are formed by including all possible intermediaries like agents, wholesalers, retailers, distributors etc. Whereas, exclusive channels are formed by including only one intermediary. Intensive channels are best suitable for marketing convenience products such as soft drinks, groceries etc. Few selective channels are used, such as only wholesalers or distributors, when reaching out to multiple retail outlets for products that consumers pay more attention before buying. Consumers tend to search for information before buying these products. Sales of such products are lesser than convenience products, hence including lesser intermediaries would be the best option for such products. Exclusive channels are used to market products that are highly priced; such channels are restricted to exclusive retailer in the market. Specialty products that are expensive and infrequently purchased are limited to exclusive retailers or show-rooms, and are provided sufficient after sales support. For example, specific automobiles are available only through exclusive retailers. Unsought products are usually marketed by the company or through single channels such as contracted marketers. These products are relatively new and are unknown to the consumers. Hence, the company takes the responsibility of bringing the product into the market before trusting it to third-party channels.
The essay "Product Strategy " describes that from consumers’ perspective, pricing strategy is dependent upon price elasticity, income elasticity and cross price elasticity. When demand is elastic, price becomes sensitive and fluctuates and inelastic demand can cause stable pricing. However, price elasticity cannot remain same over time and place…
The author of the paper states that the promotional strategies of the airline industry carry great importance in term of its operations and activities and determine the levels of its success. The first feature that has utmost significance for the airline is a well-formulated segmentation for its market.
This organisation provides car rental facilities to its customers for booking the car online. The company also arranges hotel facilities to its customers according to their requirements. Different vocation packages and cruises are other attractive services offered by Southwest Airlines.
This research will have to analyze the wants and needs of the customers to facilitate penetration as a pricing strategy. According to Armstrong and Kotler (2008), market penetration is a strategy used by companies that are growing. The main reasons as to why the company in the question chooses market penetration are that this strategy increases sales and reduces the risks involved in the new market.
As of 2011, KFC has its presence in more than 110 countries all over the world, most of which are franchised business (Lamb, Hair & McDaniel, 2011). This paper is an attempt to explore the marketing mix that is product, price, place, and promotion strategies used by KFC.
Marketing is the process of developing and implementing the idea of pricing, promotion and distribution of products and services such that they create exchanges that generates satisfaction in the objective of the organization and individual (Ferrell and Hartline, 2010).
Advertising offers the means of attracting customers to a product or the pull strategy, while personal selling offers the means to persuade the customers to purchase the product or the push strategy.
Advertising is the most effective form of
Marketing deals with satisfying the requirements of the customers and making them pleased along with making the organization achieve its objectives. At the same time the organization has to also compete with its rivals in order to stay in the market. To be in the competition the organization needs to find diverse ways and continuously upgrade itself.
As the discussion, Promotional and Advertising Strategies, declares a marketing strategy refers to that particular process that allows an organization to put its limited efforts and resources on the greatest given resources in order to increase its sales and end up achieving a sustainable competitive advantage. GM and Ford are two different companies .
Alternatively, advertising strategy focuses on the one-way communication within organization and consumers to influence the product selection and purchasing decisions of the consumers. The study will compare and contrast the promotional strategies of two
7 pages (1750 words)Research Paper
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