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Pavitar Parkash Singh, Lovely Professional University Unit 11: Retail Pricing and Communication Mix

Unit 11: Retail Pricing and Communication Mix Notes

CONTENTS
Objectives
Introduction

11.1 Consideration in Setting Retail Prices
11.2 Pricing Techniques for Increasing Sales and Profits
11.2.1 Low Cost Producer Strategy

11.2.2 Differentiation Strategy
11.2.3 Focus or Niche Strategy
11.3 Legal and Ethical Pricing Issues
11.4 Communication Programs to develop Brand Images and Build Customer Loyalty
11.5 Methods of Communicating with Customers

11.6 Planning the Retail Communication Program
11.7 Summary
11.8 Keywords

11.9 Review Questions
11.10 Further Readings

Objectives

After studying this unit, you will be able to:
 Define pricing strategies

 Explain about demand oriented pricing
 Discuss about competition oriented pricing
 Discuss pricing techniques for increasing sales and profits

 Explain about legal and ethical pricing issues
 Discuss about planning the retail communication program
 Explain the methods of communicating with customers.

Introduction

Price has always been one of the most important variables in retail buying decision. It is the
factor which makes or mars a retail organization. It is also the easiest and quickest element to
change. Pricing helps an organization to achieve its objectives. This is particularly significant
for new market entrants that need to first establish a brand, and then enjoy increasing profits as
the brand gets market acceptability. For a customer, price is the main reason to visit a particular
store. In this unit, you will learn about the implications of the pricing decision which a retailer
should consider while deciding the pricing for the retail sales.

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