MARKETING

MANAGEMENT
Dr. Mehdi Hussain
Lecture 9
Broad Contents

1. Pricing Strategies: Adapting the price

2.Designing and Managing Integrated Marketing
Communications
3.Designing and Managing Integrated Marketing Channels
What is Price?
Adapting the price: Geographical pricing

Forms of Countertrade:
• Barter
• Compensation deal
• Buyback arrangement
• Offset
What is the
Adapting Price?
price: Price discount and Allowance

Discount and Allowance

• Cash discount
• Volume / Quantity discount
• Functional discount
• Seasonal discount
• Allowance: trade-in allowance,
promotional-allowance
What is Price?
Adapting the price: Promotional pricing

Techniques to stimulate early purchase

1.Loss-leader pricing
2.Special-event pricing
3.Special customer pricing
4.Cash rebates
5.Low-interest financing
6.Longer payment terms
7.Warranties and service contracts
8.Psychological discounting
 What is Price?
Adapting the price: Differentiated pricing

Price discrimination
• Price discrimination: product/service sold at 2 or more prices
that do not reflect proportional difference in costs
• 1st-degree: separate price to each customer depending on
demand intensity
• 2nd-degree: charges less to buyers who buy a larger volume
• 3rd-degree: charges different amounts to different classes of
buyers (For example: customer segment, product-form,
image, channel, location, time.
What is Price?

Designing and Managing Integrated

Marketing Communications
 What
Role ofismarketing
Price? communications
Marketing communications are means by which
firms attempt to inform, persuade, and remind
consumers – directly or indirectly about
products and brands they sell.
Showing how and why a product is used, by
whom, where, and when.
 Marketing
What is Price? Communications Mix
Consists of eight major modes of communication.
1.Advertising: print media, broadcast media, network media,
electronic media, and display media
2.Sales promotion: consumer promotion tools (samples,
coupons, rebates, price-packs, premiums, contests, sweepstakes,
games, patronage rewards); trade promotion tools (price-off,
advertising allowance, display allowance, free goods)
3.Events & experiences: company sponsored activities and
programs
4.Public relations & publicity: to promote and protect company
image
 Marketing Communications Mix
What is Price?
Consists of eight major modes of communication.
5. Online and social media marketing: websites, e-mail,
forums, blogs, third-party chat rooms, facebook, twitter, you
tube.
6. Mobile marketing: a special form of online marketing that
places communications on consumers’ cell phones, smart
phones, or tablets. Text message, social media (individual)
marketing
7. Direct marketing: mail, catalogue, telephone, fax
8. Personal selling: sales presentation, sales meetings, fairs
and tradeshows
 What is Price?
Developing effective communications: eight steps
Step 1: identify target audience: emphasize usage and loyalty
Step 2: set communications objectives: establish need category,
build brand awareness, build brand attitude, influence brand purchase
intention
Step 3: design the communications: message strategy (what to
say); creative strategy (how to say); message source (who should say it)
Step 4: select communication channels: personal
communications channel (advocate, expert, social communication
channel); non-personal communication channel.
Step 5: establish total marketing communication budget:
affordable, percentage-of-sales, competitive parity, objective and task
 What is Price?
Developing effective communications: eight steps
Step 6: selecting the marketing communications mix
Step 7: measure communications result
Step 8: managing IMC
 Marketing Channels
What is Price?
Direct Marketing Channel
Indirect Marketing Channel

Multiple Channels