Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
Economy pricing
Economy pricing is widely used in the retail food business for groceries such as canned and frozen goods sold under generic food brands where marketing and production costs have been kept to a minimum.
Price skimming
Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, and then lowers the price over time.
Psychological pricing
Psychological pricing is a marketing practice based on the theory that certain prices have a psychological impact.
Captive product pricing
Businesses use low prices that are offered for core products and high prices are place on captive products. This strategy will attract customers to the core product with a low price
Product line pricing:
It is the process that retailers use to separate goods into various cost categories creating different quality levels in the minds of their customers.
Place
Distribution:
Distribution is when their products will be placed on online websites for example Tesco website. The products will be distributed to all the big supermarkets this is because they want their products to be recognized and make the product successful
Online/ physical presence
The product will be will be purchasable by anybody and there won’t be any limits in where you have to go to obtain the product, because it’s sold online.
Promotion
Promotional mix
This is a set of different promotional methods used for one product or a set of products.
Advertising
Different media:
A business will different advertising methods to promote their products for example on the Television on channels that are well known for example BBC also they use websites like YouTube to advertise their products another is they use celebrities to advertise for them this will help the business grow.
Online techniques:
The business will advertise their products on online websites to help them grow in size. Another way is you can use social media websites for example Facebook… Facebook is a big social media website with millions using it in their daily lives, this will help them get their product grow in size from all around the world.
Personal selling:
The business won’t sell the product themselves because that will be hard and they will have no recognition so for them to get their products recognized is they sell their products to supermarkets and online stores so they will have a big boost and a big recognition in the marketing world
Public relations:
The business to keep their products highly known and loveable is they would use celebrities that public loves. This helps them stay at the top.
Sales promotions:
The business will start making promotions for their customers for example holiday promotions, festivals and events to help them even with a bigger boost and earn more customers. Some businesses promote their sales in a way of ‘’buy one get one free’’ this will attract a lot of people because it’s a big offer.
A coherent marketing mix for new product or device of my choice
The product that I have chosen
The product I have chosen is the iPhone from Apple
This brand new iPhone will be introduced to the market made up of brand new customer group.
The new iPhone will be equipped with the latest sophisticated software designed especially for this generation of phone
This brand new phone will be aimed at various target group from young teenagers to adults with age ranging from 12 up to 50-60 years old
The marketing mx for the new product
The new iPhone 6 will is a new generation of smartphone that will be more than a simple life accessory, it is a life companion.
Unlike all new product prices, the new iPhone 6 will come at a fairly reasonable price that will make it possible for people of any class to procure themselves with it because we believe that everybody deserves quality.
The official price we set up for the quality product is fixated at £500
The promotion activities that we will create to make sure people are aware of the product will vary between stores opening events, online competitions, tech events etc...
Developing mix
Support brand building
Apple will use it’s the strong reputation and the popularity of the brand to raise the awareness of the new iPhone to make sure that existing customers as well as new customers know about the phone and its different features, prices and everything else that comes with it.
Satisfy needs and aspirations of the target group of customers
To satisfy the needs of the customers apple will be using thoroughly the 4Ps of the marketing mix ensuring that customers can trust the brand of the product while satisfying their needs and aspirations.
Importance of need for cohesion of different elements of the marketing mix
Element in their marketing mix of the apple product need to blend and flow well in order popular enough. For this to happen, it has to be as accessible as possible and we need to make sure the promotion is extensive enough for customers to be satisfied with the overall product.
The marketing mix for the new product described in details
Level 1
The benefit of the iPhone 6 at this level will be the ability of making phone calls at any time, wherever you might be. Keeping in contact with relative and friends wherever people may be.
Level 2
At this level, the actual product (iPhone 6 features)
The iPhone 6 will be equipped will the following features
- Great 4.7 inches
- Good all-round camera
- Glass leading performance
- Great new software features
- Improved battery life from previous models
- with a resolution of 1,334 x 750 (326 ppi),
- a dual-core Apple A8 processor clocked at 1.4GHz,
- 1GB of RAM,
- an 1,810 mAh battery,
- Up to 128GB of storage.
Level 3
This level is all the augmented product, which is any bonuses that may come with the product (iPhone) that customers might not be expecting.
- The iPhone will have free deliveries on any pre-orders,
- This new product will arrive with warranties
Product range I will introduce
- Along with the new iPhone 6, there will be self-charging batteries
- Wireless earphones
- Different colour cover to match each type of phone
- New software update will also be introduced often
As the core of my targeted customers is situated within young people and young adult upward the benefit for them will being able to socialise much more easily because people with this range usually like to do so.
The product life cycle of the iPhone is that it will be assisted with a software update every six months or so. This is to keep the product interesting and exiting while making sure that we stay on top of competition.
Introduction
The introduction phase of the will be made by advertisement, promotion and anything that will help the raise the awareness of the product. Stores event, competitions online adverts will be part of the process to raise awareness.
Maturity
Once the introduction stage is done and the sales of the product are being stable, we can then introduce the maturity stage. This is can be long for a product that is and has been successful. But after however long this stage take the sales will eventually start to fall as all product sales do.
Decline
The decline phase is the last stage where the sales fall significantly, and the business start leaving the market because of the low sales.
Pricing strategies for the new product
The objective of the price of this new generation of phone that is the iPhone 6 will be to maximise our market shares, get ahead of competition.
As well as that, the price will remain at a median stage to make sure all our customers and supporters are satisfied with the overall product.
The demand for the new iPhone will depend on the demand of the phone, if the demand is low, the price is more likely to be high to support and maximise our sales. If we observe that the demand is higher than expected, we will decrease the fixed price of our products.
On average the iPhone coasts around £179 to & 189 to be built up
One of our biggest competitors will be Samsung, who charge about £500 for a new phone. This is just under our price for the new iPhone.
For the new product, I will choose the premium pricing which is when the price of a product is kept high because of the quality of the product.
An explanation of the distribution method that will be used and where the new product can be purchased from
The distribution of the iPhone will be direct as well as indirect. Customers will be able to obtain the phone directly from Apple store as well as in local electronic shops or outlets. The indirect distribution of the new iPhone will be made online where it can be safely purchased with all the components.
The new phone will be also distributed online where it should be the mostly accessible by customers and will be hassle free but protected and secure at the same time.
Our method of direct distribution will benefit our targeted customers’ needs because the delivery process it will be fast the product will avoid going through the indirect process which involves wholesalers and retailers. Public sales will also suit the needs of customers who are impatient to get their hands on our brand new products.
An explanation of the methods that will be used to promote the new product
To capture the attention of our target customers, we will make sure that our core message what it needs to say to help our audience understand our message and the product. We will make sure to use catchy statements and images to attract the interest of the targeted audience.
The generate desire on our targeted customers, we will use the completely unique feature that have never seen or experienced before to reinforce the needs of the customers to buy our new phone.
In Our advertisement, we will make sure we use graphics that clearly shows the location of places where our products will be available and where every customers will find easiest to obtain the product.
The media that will be used to promote the product
For this new generation of smartphone, we intend to make sure that everyone including our targeted customers are aware and don’t miss any chance to get inform about the product. For that we will use every media possible to advertise the IPhone 6, the methods include radio, TV, billboards, magazines newspapers, and off course the internet. For our online advertisement, we intend to use anything possible, from banners to download of music and films.
Additional methods that will be used to promote the product
In addition to the most traditional methods of promotion, we also plan to use personal selling and public relation selling to boost our promotion’s success rate. The personal selling method may reach less customers compared to the online and TV promoting but it will meet the targeted customers’ needs by assuring the quality of the product and the attractive features of the phone.