Pricing and Promotion - PowerPoint PPT Presentation

ninon
pricing and promotion n.
Skip this Video
Loading SlideShow in 5 Seconds..
Pricing and Promotion PowerPoint Presentation
Download Presentation
Pricing and Promotion

play fullscreen
1 / 18
Download Presentation
Pricing and Promotion
150 Views
Download Presentation

Pricing and Promotion

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. CHAPTER22 Pricing and Promotion 22.1 The Business Buying Decision 22.2 Pricing and Costs 22.3 Promotion

  2. 22.1 The Business Buying Decision GOALS • Discuss how businesses make their buying decisions. • Describe the steps in the business buying process. CHAPTER 22

  3. Planning a Business Purchase • What to purchase • When to purchase • From whom to purchase • How much to purchase CHAPTER 22

  4. Business Buying Processes • New task purchase • Modified rebuy • Straight rebuy CHAPTER 22

  5. 22.2 Pricing and Costs GOALS • Distinguish between various types of discounts and price components. • Describe factors involved in establishing product prices and common pricing strategies. • Discuss ways that companies try to control costs that can lead to higher prices. CHAPTER 22

  6. Payment Terms and Discounts • List price • Payment terms • Discounts • Trade discount • Quantity discount • Seasonal discount • Cash discount CHAPTER 22

  7. Components of Price • Selling price • Cost of goods sold • Operating expenses • Margin or gross profit • Net profit • Markup • Markdown CHAPTER 22

  8. Components of Selling Price CHAPTER 22

  9. Pricing Strategies • Pricing to meet competition • Pricing to earn a specific profit • Profit based on consumer demand • Pricing to sell more products • Pricing to provide customer services CHAPTER 22

  10. Controlling Costs • Careful purchasing and operating decisions • Factors that can affect costs • Markdowns • Damaged or stolen merchandise • Returned merchandise CHAPTER 22

  11. 22.3 Promotion GOALS • Discuss the purpose of promotion in meeting business and consumer needs. • Discuss how businesses use advertising to promote their products. • Explain the parts of the selling process and how each is used to help customers make buying decisions that meet their needs. • Describe the different types of sales promotions. CHAPTER 22

  12. Promotion as Marketing Communication • Promotional mix • Consumer decision-making process • Problem recognition • Information search • Alternative evaluation • Purchase • Post-purchase evaluation CHAPTER 22

  13. Advertising • Advertising purposes and media choices • Planning and managing advertising • Advertising budget • Timing of advertising • Advertising evaluation CHAPTER 22

  14. Advertising Purposes • To inform and educate consumers • To introduce a product or business • To announce improvement or product change • To reinforce features and benefits • To increase frequency of use • To increase variety of uses • To convince people to enter a store • To develop a list of prospects • To make a brand, trademark, or slogan familiar • To improve the image of a company or product • To gain support for ideas or causes CHAPTER 22

  15. Types of Advertising Media • Publication advertising • Mass media advertising • Outdoor advertising • Direct advertising • Display advertising • Internet advertising CHAPTER 22

  16. Truth in Advertising and Selling • False advertising • Full disclosure • Substantiation • Penalties for violations • Case-and-desist order • Corrective advertising • Fines CHAPTER 22

  17. Personal Selling • Studying the wants of customers (buying motives) • Presenting and demonstrating the product • Answering customer questions • Closing the sale • Follow-up CHAPTER 22

  18. Sales Promotions • Coupons • Promotional material • Samples • Demonstration • Displays • Self-service merchandising CHAPTER 22