Wiley Pathways Marketing: Essential Techniques and Strategies Geared Towards Results - Softcover

Hiam, Alexander

Softcover

ISBN 10: 0471790796 ISBN 13: 9780471790792

Verlag: Wiley, 2006

Inhaltsangabe

You can get there
 
Where do you want to go? You might already be working in a business setting. You may be looking to expand your skills. Or, you might be setting out on a new career path.
 
Wherever you want to go, Marketing will help you get there. Easy-to-read, practical, and up-to-date, this text not only helps you learn fundamental marketing concepts; it also helps you master the core competencies and skills you need to succeed in the classroom and beyond. The book's brief, modular format and variety of built-in learning resources enable you to learn at your own pace and focus your studies.
 
With this book, you will be able to:
* Develop an effective marketing plan designed to reach your target audience.
* Assess buying factors and estimate marketing effectiveness in buying situations.
* Learn how to segment and target markets.
* Conduct market research, including primary and secondary research methods, and quantitative and qualitative methods.
* Develop and manage products, and learn how to use product packaging and labeling to your advantage.
* Make the most of marketing channels.
* Implement merchandising and direct marketing strategies.
* Understand the factors to consider when setting prices.
* Pump up marketing communications with great visuals, writing, and attention-getting strategies.
* Choose the best possible advertising options for your marketing plan.
* Learn how to handle public relations tasks, prepare reasonable impact scenarios, and use press releases to tell a story.
* Use the internet to market your products.
 
Wiley Pathways helps you achieve your goals
 
When it comes to learning about business, not everyone is on the same path. But everyone wants to succeed. The new Wiley Pathways series in Business helps you achieve your goals with its brief, inviting format, clear language, and focus on core competencies and skills.
 
The books in this series--Business Communication, Finance, Marketing, Business Math, and Real Estate--offer a coordinated curriculum for learning business. Learn more at www.wiley.com/go/pathways.

Über diesen Titel

Über die Autorin bzw. den Autor

Alexander Hiam, MBA, is a corporate consultant whose clients include many Fortune 500 companies. He has written numerous books and taught advertising and marketing at the University of Massachusetts at Amherst.
 
Linda G. Rastelli (Middletown, NJ) has been a professional journalist for 18 years, and has a background in education (MA from Columbia University).

Von der hinteren Coverseite

You can get there

Where do you want to go? You might already be working in a business setting. You may be looking to expand your skills. Or, you might be setting out on a new career path.

Wherever you want to go, Marketing will help you get there. Easy-to-read, practical, and up-to-date, this text not only helps you learn fundamental marketing concepts; it also helps you master the core competencies and skills you need to succeed in the classroom and beyond. The book’s brief, modular format and variety of built-in learning resources enable you to learn at your own pace and focus your studies.

With this book, you will be able to:

• Develop an effective marketing plan designed to reach your target audience.
• Assess buying factors and estimate marketing effectiveness in buying situations.
• Learn how to segment and target markets.
• Conduct market research, including primary and secondary research methods, and quantitative and qualitative methods.
• Develop and manage products, and learn how to use product packaging and labeling to your advantage.
• Make the most of marketing channels.
• Implement merchandising and direct marketing strategies.
• Understand the factors to consider when setting prices.
• Pump up marketing communications with great visuals, writing, and attention-getting strategies.
• Choose the best possible advertising options for your marketing plan.
• Learn how to handle public relations tasks, prepare reasonable impact scenarios, and use press releases to tell a story.
• Use the internet to market your products.

Wiley Pathways helps you achieve your goals

When it comes to learning about business, not everyone is on the same path. But everyone wants to succeed. The new Wiley Pathways series in Business helps you achieve your goals with its brief, inviting format, clear language, and focus on core competencies and skills.

The books in this series––Business Communication, Finance, Marketing, Business Math, and Real Estate––offer a coordinated curriculum for learning business. Learn more at www.wiley.com/go/pathways.

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Marketing

Essential Techniques and Strategies Geared Towards ResultsBy Alexander Hiam

Jossey-Bass

Copyright © 2006 Alexander Hiam
All right reserved.
ISBN: 978-0-471-79079-2

Chapter One

PRICING Mastering Pricing Concepts

Starting Point

Go to www.wiley.com/college/Hiam to assess your knowledge of the basic pricing concepts. Determine where you need to concentrate your effort.

What You'll Learn in This Chapter

* How pricing affects customer perceptions of your product or service

* Factors to consider when setting a price

* How to avoid illegal pricing practices

* Understanding discount structures and general pricing approaches

After Studying This Chapter, You'll Be Able To

* Demonstrate ways to raise prices while increasing sales

* Effectively employ special offers and discounts

* Interpret customer perceptions of pricing

Goals and Outcomes

* Estimate how price sensitive your customers are

* Predict the redemption rate for your marketing offer

* Set prices that take into account multiple factors

INTRODUCTION

Establishing a price is one of the toughest things anybody does in business. In this chapter, we'll take you through the pricing process logically, step by step. Price setting has many factors, including customer perceptions and your own objectives. The pricing process generally has five steps.

9.1 The Facts of Price

Some marketers believe that businesses fail most often for two simple reasons: Their prices are too high, or their prices are too low! Getting the price just right is the hardest task marketers face, but finding the right pricing approach makes success a lot easier. The bottom line of all marketing activities is that the customer needs to pay - willing and, you hope, rapidly - for your products or services.

But how much will they pay? Should you drop your prices to grow your markets? Or would raising the price and maximizing profits be better? What about discounts and special promotional pricing? Getting the price part of your marketing plan right is hard. And several trends have been forcing prices downward:

* Foreign competition has put pressure on American companies. Foreign-made products are often higher in quality but cheaper to produce.

* Competitors try to gain market share by lowering prices. Customers may be more price sensitive than ever.

* New products are far more common today than in the past. Pricing new products is tougher, because there's no history to draw upon.

* Technology has caused rapid turnover of products. Marketers face pressure to price products to recover cost more quickly.

Most companies fall prey to the myth that customers choose a product based only on its list price. They set their list prices lower than they need to. Or when they need to boost sales, they do so by offering discounts or free units. If you insist on selling on the basis of price, your customers buy on me basis of price.

But alternatives always exist. To raise your price and still sell more, you can:

* Build brand equity. Better-known brands command a premium price.

* increase quality. People talk up a good product, and that word of mouth earns it a 5 to 10 percent higher price than the competition.

* Use prestige pricing. Giving your product a high-class image can boost your price 20 to l00 percent.

* Create extra value through time and place advantages. Customers consider the available product worth a lot more than one you cannot get when you need it. (That's why a cup of coffee costs twice as much at the airport - are you really going to leave the terminal, get in a taxi, and go somewhere else to save a couple of bucks?)

Sure, price is important, but it doesn't have to be the only thing - unless the marketer doesn't know this price fact.

9.1.1 Exploring the Impact of Pricing on Sales

You need to estimate how price-sensitive your customers are. Price sensitivity is the degree to which purchases are affected by price level.

The following list is a series of qualitative indicators of price sensitivity. Ask the following questions about your customer, product, and market. Then add up the number of "yes" answers and see which way they lean. This study isn't scientific, but it gives you a good idea.

* Does the customer view the price as reasonable? If you are operating within an expected price range, customers aren't very price sensitive. Outside of the expected price range, they become more sensitized.

* Is the product valuable at (almost) any price? Some products are unique, and customers know that finding a cheaper substitute may be hard. That lowers price sensitivity.

* Is the product desperately needed? I do not care how much fixing a broken arm at the emergency ward of a hospital costs - if my arm is broken! And I'm not too price sensitive about roadside repair and towing services if I've broken down on the highway at night. These products meet essential needs. But if your product is a nonessential, meaning they do not have to have it right now, the customer is more price sensitive.

* Are substitutes unavailable? If the customer purchases in a context where substitute products aren't readily available, price sensitivity is lower. Shopping for price requires that substitutes at different prices be available. (For example, if you are the only local company offering plumbing repairs on weekends, you can command a high price for your services.)

* Is the customer unaware of substitutes? What the customer doesn't know costs him. And shopping is a complex, information-dependent behavior. The Internet makes it easier to compare prices - but not everything is convenient to buy that way. Not everyone is willing to shop around.

* Does the customer find comparing options difficult? Even where options exist, the consumer can have much difficulty comparing some products. What makes one doctor better than another? It's hard to say The technical complexity of their work, plus the fact that you cannot consume medical care until after you make the purchase decision, makes comparing options hard. And that difficulty makes health-care consumers less price sensitive - and doctors richer.

* Does the product seem inexpensive to customers? Customers do not worry too much about price when they feel like they're getting a good value. However, if customers feel the pinch on their pocketbooks when they buy, they pay close attention to prices. That's why you negotiate so hard when you buy a car or a house. Even products that cost far less can seem expensive if they're at the high end of a price range. For example, you are more price sensitive if you shop for a fancy, high-performance laptop computer than for a simple, basic desktop unit because the former probably costs 50 to 100 percent more than the latter, making the laptop expensive by comparison.

The more of these that apply, the less price sensitive your customer is. If more than one is true, you probably can raise prices without hurting sales significantly. You can supplement your estimate of price sensitivity (from this list) with actual tests.

For example, if you think a 5-percent increase in prices won't affect sales, you can try...

Details zur Ausgabe

• Verlag: Wiley
• Erscheinungsdatum: 2006
• Sprache: Englisch
• ISBN 10: 0471790796
• ISBN 13: 9780471790792
• Einband: Taschenbuch
• Auflage: 1
• Anzahl der Seiten: 376
• Kontakt zum Hersteller: Wiley-VCH GmbH; product_safety@wiley.com; ; Boschstrasse 12; Weinheim; 69469; Deutschland