Question

1. Describe the different pricing strategies that could apply to your product or service?

2. What are the types of sales promotion available to small businesses?

3. What are the different types of direct marketing and their pros and cons.

4. Describe and explain how to do non-direct distribution.

5. Differentiate the types of international strategies.

6. Identify the factors to consider in selecting your business location.

7. What are the key issues in leasing.

Answer 1

1) Different pricing strategies :-

Price is among one of the four marketing mix. Marketers needs to make the pricing in such a way so that it can be relevant to the product quality and feature. Some pricing strategy are -

a. Penetration pricing :-

For the gaining of the market share, the prices of the product are kept low and simultaneously keeping the quality of the product or service high. Once the market share and good customer base is gained the price can be increased.

b. Economy pricing :-

In this strategy, the price of the product as well as the quality is kept low. The promotion of the product or service is minimum. During the slowdown of the economy, the products of this pricing strategy can have more no. of sales.

c. Price skimming :-

With this strategy, the price of the products or services are kept very high as a competitive advantage. Although the pricing is not sustainable as the quality of the product or service is low. New competitors can gets attracted due to high pricing.

d. Premium pricing :-

The pricing of the product or service is higher than that of the competitors in the market. When the quality of the product is very good and the product is also somewhat unique and attractive, the premium pricing strategy can be effective. With high price tag, the customers also perceive high value of the product or service.

Hope this helps :)