The board of directors and chief marketing officer (CMO) are sitting in on the weekly meeting you have with your team. You have decided to make a five-page informational brochure for the team to follow along as you discuss the basic microeconomic theory and its devotion to the relationship between price and demand and value-based pricing, including the concepts of value-in-use and value-in-exchange, which is increasingly popular. You are also discussing the many touchpoints a consumer requires before they are converted into a customer.
Your 5-page informational brochure will include the following:
Role of pricing decisions on the overall company and marketing strategies
Value-based pricing (value-in-use and value-in-exchange)
Price skimming and penetration
Management of international distribution channels and logistics
Mass customization
Five aspects of communication
Social media mix
Viral marketing as a viable marketing tactic that can deliver positive return on investment (ROI)
Pricing Decisions
Pricing is one of the most important marketing decisions that a company can make. It has a direct impact on the company’s profitability, market share, and brand image. Pricing decisions must be made in the context of the company’s overall marketing strategy.
There are a number of factors to consider when making pricing decisions, including:
Value-Based Pricing
Value-based pricing is a pricing strategy that sets the price of a product or service based on the value that it provides to the customer. This is in contrast to cost-based pricing, which sets the price based on the cost of producing and distributing the product or service.
Value-based pricing is becoming increasingly popular, as it allows companies to price their products and services at a premium if they are perceived as being more valuable to customers.
There are two types of value-based pricing:
Price Skimming and Penetration
Price skimming and penetration are two pricing strategies that can be used to launch a new product.
Management of International Distribution Channels and Logistics
The management of international distribution channels and logistics is a complex task. Companies need to consider a number of factors, such as customs regulations, tariffs, and shipping costs.
There are a number of different ways to manage international distribution channels and logistics. Companies can use their own distribution channels, or they can outsource this function to a third-party logistics provider (3PL).
Mass Customization
Mass customization is a production process that allows companies to produce customized products in mass quantities. This is made possible by advances in technology, such as computer-aided design (CAD) and computer-aided manufacturing (CAM).
Mass customization allows companies to offer a wider range of products to their customers without having to increase their inventory costs.
Five Aspects of Communication
The five aspects of communication are:
It is important to consider all five of these aspects when developing a communication strategy.
Social Media Mix
A social media mix is a combination of social media platforms that a company uses to communicate with its customers.
The most popular social media platforms include:
Companies should choose a social media mix that is appropriate for their target market and marketing objectives.
Viral Marketing
Viral marketing is a marketing technique that encourages people to share information about a product or service with others. This can be done through social media, word-of-mouth, or other channels.
Viral marketing can be a very effective way to reach a large audience and generate interest in a product or service. However, it is important to note that viral marketing campaigns can be difficult to control and may not always produce the desired results.
Conclusion
Pricing, value-based pricing, price skimming, penetration, international distribution channels, logistics, mass customization, communication, social media, and viral marketing are all important marketing concepts. Companies need to understand these concepts in order to develop effective marketing strategies.
Additional Information on Viral Marketing
Viral marketing is a marketing technique that encourages people to share information about a product or service with others. This can be done through social media, word-of-mouth, or other channels.
Viral marketing can be a very effective way to reach a large audience and generate interest in a product or service. However, it is important to note that viral marketing campaigns can be difficult to control and may not always produce the desired results.