Page 162 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 10: Marketing Considerations

Going Rate Pricing: When the company charges largely by benchmarking prices with its Notes
competitor then it is called going rate pricing.
Marketing Strategy: Marketing strategy is a process that can allow an organization to concentrate
its resources on the optimal opportunities with the goals of increasing sales and achieving a
sustainable competitive advantage.

Pricing: This refers to the process of setting a price for a product, including discounts. The price
need not be monetary – it can simply be what is exchanged for the product or services, e.g. time,
energy, psychology or attention.
Promotion: This includes advertising, sales promotion, publicity, and personal selling, and
refers to the various methods of promoting the product, brand, or company.

Skimming Pricing: In this pricing strategy, relatively higher prices are charged for a short
period of time and then the price is reduced so that the product becomes available to a larger
market.
Target Market: The consumers a company wants to sell its products and services to, and to
whom it directs its marketing efforts.

Value Pricing: When the company prices its products at lower prices with high quality, for
customers who seek value for money, like in Big Bazar.

10.7 Review Questions

1. Define the target market.

2. Explain the ways to address the wants and needs of a target market.
3. Explain the growth strategies found common in small businesses.
4. “Pricing is an important function of marketing.” Explain.

5. What factors will you keep in mind while pricing your product?
6. What are the ways in which you can decide your price? Explain with examples.
7. Explain briefly price skimming.
8. What do you mean by economic pricing?
9. Write a short note on psychological pricing.

10. Define service marketing. Explain the various characteristics of service marketing.

Answers: Self Assessment

1. Decision 2. Homogenous
3. Warranty 4. Target
5. Tailoring 6. Penetration

7. Entering 8. Diversification
9. Function 10. Barter
11. Competition 12. Bundle
13. Export 14. Economic

15. Policy

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