Pricing Issues in International Marketing

Price can be defined in the ratio terms, giving the equation:

                             resources given up
price  =     ———————————————               
                                 goods received

With this equation there are several ways that the price can be changed:

·      “Sticker” price changes- the most obvious way to change the price is the price tag. You receive the same thing, but for a different amount of money.

·      Change quantity. Consumers respond negatively to an increased sticker price, and change in quantity are sometimes noticed less.

·      Change quality. Another way candy manufacturers have effectively increased prices is through a reduction in quality.

·      Change terms. In the old days, most software manufacturers provided free support for their programs. Nowadays, you either have to call a 900 number or have a credit care handy to get help from software makers. Another way to change terms is to do away with favorable financing terms.

Consumers often develop internal reference prices or expectations about what something should cost, based mostly on their experience. Retailers very often promote soft drinks, since consumers tend to have a good idea of process and these products are quite visible. The trick, is to be more expensive on products where price expectations are muddier.

Marketers often try to influence people’s price perceptions through the use of external reference prices. For example

• Manufacturer's Suggested Retail Price (MSRP). This is often pure fiction. The suggested retail prices in certain categories are deliberately set so high that even full service retailers can sell at a "discount." Thus, although the consumer may contrast the offering price against the MSRP, this latter figure is quite misleading.
• "SALE! Now $2.99; Regular Price $5.00." For this strategy to be used legally in most countries, the claim must be true (consistency of enforcement in some countries is, of course, another matter). However, certain products are put on sale so frequently that the "regular" price is meaningless. In the early 1990s, Sears was reported to sell some 55% of its merchandise on sale.
• "WAS $10.00, now $6.99."
• "Sold elsewhere for $150.00; our price: $99.99."

Can you think of another way marketers can change the prices without the consumer knowing? Do you think this is ethical or unethical?

In Response To Billy's Post

Can you think of any other companies that do this?

To companies that came to my mind when thinking about companies that promote other companies in the same commercial would be Gillette razor, which helps promote Gillette stadium, and also TD bank, which helps promote TD Garden in Boston. These two stadium have nothing to do with a bank or a razor if you heard of them but at the same time have everything to do with each other. I think when creating a commercial it is a smart way to tie in another company, two reasons you can get more for your money and most likely this will pay off and people will soon associate both product together. 

Importance of Branding

 The American Marketing Association defines a brand as a “name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the other sellers. Branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.

Objectives that a good brand will achieve:

·      Delivers the message clearly

·      Confirms your credibility

·      Connects your target prospects emotionally

·      Motivates the buyer

·      Concretes User Loyalty

In order to succeed in branding you must understand the needs and wants of your customers and prospects. You can do this by integrating your brand strategies through your company at every point of public contact. The brand resides within the hearts and minds of customers, clients, and prospects. It’s the total sum of their experiences and perceptions, some of which you can influence, and some that you cannot. It is important to spend time investing in researching, defining and building your brand. Your brand is the source of a promise to your consumer, a foundational piece you do not want to be without.

In Response to Maggie Carter's Post

Do you think using Flash mobs and other means to relate to young people is a good idea for our future?

            I do believe that using flash mobs is a great way to spread awareness about the earth and it’s issues. Young people would rather see or hear this information, young people don’t like to ‘waste’ there time reading about environmental/global issues they would rather hear about it.  What better way then to have a flash mob it educates you and give you a show. 

As you see in this video once people start to hear someone talk over the loud speaker they stop to listen, to me this would be a great way to spread awareness in a fun and exciting way, hoping people will get the right message. 

In the next few years what are other promotional ideas do you think would be best to promote awareness of the earth?