CONCEPT OF PRICING, GROWTH STRATEGY AND MARKETING PLAN

PRICING
The term price means the money value to be changed from
the customer for a product or service. The decision related to pricing of a product or service are called price mix. In other words, price mix involves determining the price of products and establishing policies regarding cash, trade and quantity discount and also credit sales. Price denote the amount of money for which a product could be exchanged. The price of the product of a firm constitutes an important elements of its marketing-mix. Pricing is also important from the point of view of the consumer

OBJECTIVES OF PRICING
To achieve target rate of return on investment or on net sale. To achieve price stability. To meet or prevent competition. To maintain or improve market share. To maximize profit. To build public image of the firm.

FACTORS AFFECTING PRICE

Cost of product. Demand for product. Competition in the market. Product differentiation. Pricing objectives of the Enterprise. Types of customers. Govt regulations. Miscellaneous Services Offered.

METHODS OF PRICING
Cost plus pricing. Variable pricing. Base price and discount. Market rate or competitive pricing. Skimming the cream pricing. Penetration pricing. Price lining. Psychological pricing.

Growth strategy
Growth strategy is a firms planned course of action to fight competition and increase its share in the market. Growth strategy the means by which an organization plans to achieve its objective to grow in volume and turnover. A strategy based on investing in companies and sectors which are growing faster than their peers.

Diversification Strategy
Goal: develop & introduce products/services to new or emerging markets Related &unrelated

Marketing Plan
The Marketing Plan is a highly detailed, heavily researched and, hopefully, well written report that many inside and possibly outside the organization will evaluate. It is an essential document for both large corporate marketing departments and for startup companies. Marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a wellwritten marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.

Essentially of the Marketing Plan:

Forces the marketing personnel to look internally in order to fully understand the results of past marketing decisions. Forces the marketing personnel to look externally in order to fully understand the market in which they operate. Sets future goals and provides direction for future marketing efforts that everyone within the organization should understand and support. Is a key component in obtaining funding to pursue new initiatives.

NEEDS
Needed as part of the yearly planning process within the marketing functional area. Needed for a specialized strategy to introduce something new, such as new product planning, entering new markets, or trying a new strategy to fix an existing problem. Is a component within an overall business plan, such as a new business proposal to the financial community.

A Marketing Plan Format

I. Statement of the Marketing Goal II. Marketing Objectives for the Project A. Overall Objective B. Primary Objectives (each is assigned and tagged with a deadline) C. Sub-objectives for every primary objective (each is assigned and tagged with a deadline) III. Target Market Segments A. Identify (primary only)B. Why selected C. Desired exchange

IV. Marketing Strategies A. Main strategies

B. Strategy Development by Target Group

1.Target Group A 2.Target Group B 3. Target Group C

1. Market Penetration 2. Market Development 3. Service/program Development 4. Diversification

C. Promotional Tools (list) V. Monitoring Techniques

Progress Reports Timeline Outcome Measurements

VI. Budget