Products’ Promotion Using Pricing Strategies

PRODUCTS’ PROMOTION 4

Products’PromotionUsing Pricing Strategies

Products’PromotionUsing Pricing Strategies

Itis evident that business enterprises that choose the best pricingstrategies for their company help them to achieve both pricing andmarketing objectives. The management of Winky International Shop hasa plan of marking significant profits from the sales of its productsin the market but lack certain key pricing strategies to employ whenconducting the promotion of its products. When marketers of thiscompany use various types of price strategy, they will find easy timeto solve practical problems of establishing prices. Grewalet al. (2012) highlight some of the basic examplesof pricing strategies that the enterprise can use, which includepsychological pricing, differential pricing, new product pricing,promotional pricing, product-line pricing as well as professionalpricing.

  1. Differential pricing strategy

Randomdiscounting– the majority of customers often purchase most of the productswhen offered at a lower price in the market. The organization shouldemploy random discounting pricing strategy for them to minimize theproblem of customers’ prediction when lowering the prices ofcertain products. The organization, therefore, will reduce theproducts’ prices temporarily using non-systematic manner orrandomly. Random price reduction is best for attracting new customersin the market, and the real consumers will not delay their purchasesfor products upon predictions to buy products at a lower price. Themarketers for the company can use both sales promotion andadvertising promotion methods of the products.

SalesPromotion– the company can use this promotion method, which involves the useof short-term techniques to attract their customers in the market.The method can be in the form of an incentive that encourage andattract customers to buy the products sold in the market.Distribution of voucher cards (with expiry dates) to customers,whenever they make purchases at stores, will motivate every anindividual to act or buy while the offer is still valid.

Advertising–the method involves non-personal promotion, and mostly uses massmedia outlets such as print media (newspapers), televisions and radiopresentations to pass the marketers’ messages. The listedadvertising methods do offer limited chances for feedback from theend users (customers) since it involves a one-way communication.However, due to technological advancement, the Internet use hasincreased the customers’ feedback on the promoted products in themarket.

  1. Psychological pricing strategy

Multiple-UnitPricing– this is the best strategy Winky International Shop should employto promote its products. The management will set a single price twoor more units, such as three bathing soaps for $2 instead of $1 persoap. The best promotion strategy Winky International Shop shouldemploy when promoting its products (such as washing detergents andother frequently purchased products) in the market is multiple-unitpricing. The strategy will increase the sales. When using this pricestrategy, the management of the shop can use personal selling as amethod of promoting its products. There will be a face-to-faceinteraction between the company’s representative and customersinfluencing them on the benefits of products on offer.

  1. Product-line pricing strategy

Captivepricing– if the management decides to use captive pricing, the prices ofthe essential products must be set slightly lower, but the prices ofthe products that enhance the primary product are set at a higherlevel. For example, customers who buy TV decoders must also buy theaerial. The prices of aerials must be greater than of decoders. Theenterprise can use either advertising or personal selling promotionmethod to sell such products to the customers.

References

Grewal,D., Roggeveen, A. L., Compeau, L. D., &amp Levy, M. (2012). Retailvalue-based pricing strategies: New times, new technologies, newconsumers.&nbspJournalof Retailing,&nbsp88(1),1-6.