nd Mc Leod, 1996

2.3.4 Pricing Strategies for Confectionery Products

Research states that two pricing strategies namely Skimming and Penetration are dominant while other pricing strategies are considered to be secondary as they constitute a compromise between the two strategies (Cannon & Morgan, 1991, McCarthy & Perreault, 1993; Rowley, 1997).

Dean (1976) defines skimming as charging relatively high prices. According to Kehagias & Skourtis (2009) this strategy is generally preferred when the company focused on promoting the exclusivity or superiority of its products. To sustain this idea Cavusgil (1996) argues that skimming strategy can be effective for products that address to certain segments that are willing to pay premium price for them. By itself this strategy is appropriate in niche markets and where prices have no influence on consumers.

Penetration Pricing is concerned about charging relatively low prices (Dean, 1976). From the viewpoint of Rowley (1997), the objective of penetration pricing is to gain large market share quickly and Alvontis & Indounas (2005) confirm this idea to further suggest that penetration strategy is more suitable when the company is concentrating on increasing its market share. The idea is that prices should be set low to attract customers as quickly as possible before they are attracted by competitors.

2.3.5 Summary

Thus in the light of what has been said price can mean more to consumer than just a monetary exchange of value. In this respect setting and managing prices are critical elements of the marketing managers’ tasks.

2.4 Part 4-Distribution within Marketing Mix

2.4.1 Place

As a marketing strategy, place also known as physical distribution is concerned with the possession of service that is accessible to customers at the right place and at the right time (Low and Tan, 1995). According to Darling (2001), distribution component mix is a combination of elements such as marketing channel outlets, storage facilities, inventory control and shipping facilities.