Pricing & Promotion |
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Task 1
Recap
What do you remember about the following pricing strategies:
Recap
What do you remember about the following pricing strategies:
Word bank
RRP - Recommended Retail Price, i.e. the price the manufacturer suggests the retailer charges
Unit cost - all expenses incurred to manufacturer a product or deliver a service including transport, raw materials labour, premises, etc. divided by the number of items manufactrored.
Profit - The percentage of margin mark-up cover the unit cost. Gross profit = sales price - unit cost
BOGOF - Buy One Get One Free
Early adopter - customers that are always eager to have the latest p[product and are willing to pay a premium for the privilege
RRP - Recommended Retail Price, i.e. the price the manufacturer suggests the retailer charges
Unit cost - all expenses incurred to manufacturer a product or deliver a service including transport, raw materials labour, premises, etc. divided by the number of items manufactrored.
Profit - The percentage of margin mark-up cover the unit cost. Gross profit = sales price - unit cost
BOGOF - Buy One Get One Free
Early adopter - customers that are always eager to have the latest p[product and are willing to pay a premium for the privilege
Information
Promotional advertising is made up of various ways of communicating information about products with the purpose of raising awareness and generating an interest. The promotional material should inform, persuade and influence consumers to purchase a product and the reasons why the purchase should be made from their business as opposed to another.
Promotional advertising is made up of various ways of communicating information about products with the purpose of raising awareness and generating an interest. The promotional material should inform, persuade and influence consumers to purchase a product and the reasons why the purchase should be made from their business as opposed to another.
Too big top advertise?
Some businesses appear not to need to advertise given their household brand name and dominant position in the market, e.g. Coca-Cola. However it is important that they stay active and relevant, otherwise they risk losing market share to competitors. |
AIDA
The marketing model knows as AIDA defines promotion as a four step process; first gain the attention of the customer; this leads to them being interested to learn more; once they have learned more about the product they desire to own/experience it; finally they take the action to purchase the product when the opportunity arises. |
Task 3
Team task
Use the AIDA model to suggest how your would promote one of the following:
Team task
Use the AIDA model to suggest how your would promote one of the following: