Page 39 - F1 - AB Integrated Workbook STUDENT 2018-19

Business organisation and structure

Pricing issues:

 Cost
Product issues:  Customers Promotional
 Competition
 Product issues:
 Corporate objectives
definition – what Promotion is
exactly the These issues can be essentially about
product should blended to give a range of market
be pricing tactics: communication.

 Product The primary aim is
positioning –  Cost plus pricing to encourage
how does our  Penetration pricing customers to buy
 Perceived quality pricing
product  Price discrimination the products by
compare with  Going rate pricing moving along the
the offerings of  Price skimming AIDA timeline:
our  Loss leaders  Awareness
competitors?  Interest
 Captive product pricing  Desire
 Action

Promotional
techniques
include:
 Advertising
 Sales promotion
The 4 P’s techniques

 Personal selling
 Public relations

Place (distribution) issues:

Key decision is whether to sell direct to the ultimate consumer without using
middlemen or use the channel strategy which comprises a mixture of retailer,
distributors, wholesalers, shipping agents etc.

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