Price, promotion in marketing

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LAST week we looked at two elements product and place. This week I would like to focus on another two; price and promotion:

LAST week we looked at two elements —product and place — that are considered when we market our business, and constitute the few essentials which set our business image. This week I would like to focus on another two; price and promotion:

– Price “The customer’s perception of value is an important determinant of the price charged. Customers draw their own mental picture of what a product is worth. A product is more than a physical item, it also has psychological connotations for the customer”, http://businesscasestudies.co.uk. For example, if someone needed brain surgery and the price for the doctor was $50 to perform this operation, we would question this service.

The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised Therefore, it is important when deciding on price to be fully aware of the brand and its integrity.

Amy Edwards of A L Edwards Image Consulting states that “the pricing of your product must be determined by the need and the ability to remedy this need.” When the need for the best is that great, price determines quality. When you set a price to your product or service, think about your product and to whom you are selling this item.

Can they afford your price, or is the price set too low? Does the price reflect its surroundings, such as the place of business or website location? Are your prices in balance with the image you have projected?

– Promotion The promotion aspect of the marketing mix covers all types of marketing communications. These methods include advertising. Advertising is conducted on TV, radio, cinema, online, poster sites and in the Press (newspapers, magazines and so on). Other promotional methods include sales promotions, merchandising, direct mail, telemarketing, exhibitions, seminars, loyalty schemes, to name but a few.

The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results.

The purpose of most marketing communications is to move the target audience to some type of action. This may be for example, to buy the product. Key objectives of advertising are to make people aware of an item, feel positive about it and remember it. Coca-Cola is a great example of how effective marketing can be if used tactfully.

Coca-Cola can be said to be the most recognisable brand in the world. Why is this so when essentially coke is just water, sugar, a few secret flavours and some bubbles? Its dominance is based on brilliant marketing.

Through its intense marketing campaign, Coke has developed an image that is reflected in what we think of when we buy Coke and what we associate with drinking Coke. When you think Coke you think “good times.”

This applies even in our own country; what is a wedding or a braai without Coke?

The right media depends on who the viewers, readers or listeners are and how closely they resemble the target audience.

 Nonto Masuku is an executive partner of an image management consultancy firm.