The Product
Payne’s Poppets product will be the showing of films, bowling games and refreshment sales.
Payne’s will need to be able to provide viewings of newly released films, keep the furnishings maintained and employ friendly and courteous staff in the cinemas and in all other sections of the business to ensure that their customers will return.
Price
The prices that the products are to be sold at should be at a level which the customer will believe to be value for money and not just cheap, as this may sometimes be thought as a reflection of the quality of the product they will receive influencing their final decision on whether or not they will purchase it.
Payne’s could use one of the following pricing strategies to sell their product at depending on the market:
Penetration Pricing-is where a firm charges a very low price when the product is new, and is used to increase the interest from customers.
Skimming-is when firms charge a high price to make the product seem desirable to customers who have a larger income
Destroyer Pricing-this is when firms charge prices which they know are unprofitable for their competitors, driving them out of the market. However this is illegal.
Price Discrimination- this is charging different prices to different customers for the same product e.g. Students, OAP's.
Competition Pricing- this is where firms charge very similar prices as other firms. Usually this happens where there is very little product differentiation e.g. Petrol.
Promotion
Payne’s Poppets needs to advertise for four main reasons:
To make customers aware of new products.
To remind customers about existing products.
To persuade customers to switch from rival products.
To improve the image of the business.
The ultimate aim of these points is to sell more products.
The places Paynes will advertise from depends on three things.
Their target audience.
The size of their market.
The size of their advertising budget.
Forms of Advertising and their advantages and disadvantages
Place
If Payne’s Poppets locates in a place that is convenient for the market, more custom will be created because more customers will be buying the product. Also the location should be close to a form of public transport e.g. Bus station, Railway Station.
The source of a labour force should also be near by.
