A reference price is the expected and acceptable price range that a consumer is willing to pay for a particular product and/or brand. There are two types of reference prices that marketers need to be aware of. These are: internal reference prices and external reference prices.
Price premium refers to the brand’s price to the consumer relative to a key competitors price or relative to the average price charged in the marketplace. There are two ways to calculate price premium, depending upon whether or not we have access to market share information.
In addition to driving profits, pricing has a key role in the marketing mix and overall positioning.
This articles outlines the main INTERNAL factors that influence a firm’s price decision, namely marketing objectives, marketing strategy, and cost structure.
In the United States, over $3B worth of coupons and rebates are redeemed each year – indicating that it is an effective form of sales promotion. According to various academic studies, around 20% to 30% of consumers will be actively involved in the collection and redemption of coupons. These consumers tend to be more …
Sales promotions are short-term incentives designed to drive sales. They are part of the promotional mix within the marketing 4P’s. Because they often carry pricing incentives, such as discounts, they also have a crossover with the pricing mix in the 4P’s as well. Two common promotional vehicles used in a sales promotion program are …
Sales promotions are short-term incentives designed to drive sales. They are part of the promotional mix within the marketing 4P’s. Because they often carry pricing incentives, such as discounts, they also have a crossover with the pricing mix in the 4P’s as well. Sales promotions are usually executed through retailers, but service firms and …
