Price
Price is the cost consumers pay for a product. Marketers must link the price to the product's real and perceived value, but they also must consider supply costs, seasonal discounts, and competitors' prices. In some cases, business executives may raise the price to give the product the appearance of being a luxury. Alternatively, they may lower the price so more consumers can try the product.
Marketers also need to determine when and if discounting is appropriate. A discount can sometimes draw in more customers, but it can also give the impression that the product is less exclusive or less of a luxury compared to when it is was priced higher.
UNIQLO, headquartered in Japan, is a clothing manufacturer of global casual wear. Like its competitors—other famous causal wear brands such as Gap and Zara—UNIQLO creates low-price, daily-use garments.
What makes UNIQLO unique is that it creates innovative, high-quality products. It is able to accomplish this by procuring its fabric from its material manufacturer partners, securing stable, high-quality materials at low cost by ordering in large volumes, and continuously seeking the highest-quality and lowest-cost material in the world. The company also directly negotiates with its manufacturers and has built strategic partnerships with high-quality and innovative Japanese manufacturers.
UNIQLO also outsources its production to partner factories; because it doesn't own its own factories, it has the flexibility to change production partners if the best production location changes over time. Finally, the company employs a team of skilled textile artisans that it sends to its partner factories all over the world for quality control. In addition, production managers visit factories once a week to resolve quality problems.
https://www.investopedia.com/terms/f/four-ps.asp#:~:text=Product%2C%20price%2C%20promotion%2C%20and,of%20a%20good%20or%20service.
Marketers also need to determine when and if discounting is appropriate. A discount can sometimes draw in more customers, but it can also give the impression that the product is less exclusive or less of a luxury compared to when it is was priced higher.
UNIQLO, headquartered in Japan, is a clothing manufacturer of global casual wear. Like its competitors—other famous causal wear brands such as Gap and Zara—UNIQLO creates low-price, daily-use garments.
What makes UNIQLO unique is that it creates innovative, high-quality products. It is able to accomplish this by procuring its fabric from its material manufacturer partners, securing stable, high-quality materials at low cost by ordering in large volumes, and continuously seeking the highest-quality and lowest-cost material in the world. The company also directly negotiates with its manufacturers and has built strategic partnerships with high-quality and innovative Japanese manufacturers.
UNIQLO also outsources its production to partner factories; because it doesn't own its own factories, it has the flexibility to change production partners if the best production location changes over time. Finally, the company employs a team of skilled textile artisans that it sends to its partner factories all over the world for quality control. In addition, production managers visit factories once a week to resolve quality problems.
https://www.investopedia.com/terms/f/four-ps.asp#:~:text=Product%2C%20price%2C%20promotion%2C%20and,of%20a%20good%20or%20service.
What you need to know and understand:
- The appropriateness of the following pricing methods.
- Cost-plus (mark-up) pricing
- Penetration pricing
- Loss leader
- Predatory pricing
- Premium pricing
- Dynamic pricing [HL only]
- Competitive pricing [HL only]
- Contribution pricing [HL only]
- Price elasticity of demand [HL only]
- Cost-plus (mark-up) pricing
Conceptual Understandings:
- Social, cultural and technological change can impact the language and medium of marketing
- Creative ways of informing stakeholders can lead to positive business outcomes
- Ethical marketing practices can enhance a business’ brand image
- Sustainable marketing practices can be effective for business success
Questions to consider:
- Can companies know us better than we know ourselves?
- How might a company protect against sample error and bias when designing primary market research?
- Are there different criteria for ethical standards for online services compared to physical products?
- Are consumers rational?
- Are predictions in the human sciences inevitably unreliable?
- How might the language used in focus groups influence the conclusions that are reached?
- Are consumers too unpredictable to study scientifically?
- Is it possible to eliminate the effect of researcher bias when conducting market research?
- What impact has social media had on how consumers acquire and share knowledge of products?
TEXTBOOK unit 4.5 2
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