Marketing strategy: Pricing

 

Too many brands are trying to combat the recession with excessive price promotion, which will do long-term harm to many categories, leading to commoditisation and erosion of brand loyalty. Some brands ...

Marketers are using Global TGI to scrutinise the fine details of cautious shoppers' behaviour in 60+ countries. This brief extract reveals that the reaction to the recession by business has been to c ...

No one looks forward to a recession, but downturns can also provide opportunities, some as a result of changes in consumer behaviour, others due to alterations in the marketing strategies of a brands' ...

Trade spending has become the single biggest cost for most fmcg manufacturers, as an increasingly condensed grocery retailer market finds more and more ways to squeeze money out of suppliers. Companie ...

This article summarises the book 'Predictably Irrational: the hidden forces that shape our decisions' by Dan Ariely (Harper Collins, 2008). The book's central premise is that consumers do not always a ...

In many national economies, the automotive business plays a major role - in Germany, for instance, 10% of the working population is in some way connected to the automotive industry. In automotive reta ...

Marketers are facing a new range of key performance metrics inspired by changes in the social, cultural, political and economic landscapes. This article discusses seven key areas demanding their atten ...

It is no longer the case that shopping at a low-cost store indicates poverty; smart consumers have come to realise that price is not always an indicator of quality, as premium-priced products may be m ...

Pricing is not a rational science, since it mainly depends on consumer attitudes. Nobody knows what a new technology product is worth until the consumer responds, as illustrated by the Apple iPhone. I ...

This paper describes the experience of developing Orange's European mobile consumer segmentation and applying it to the UK market. The process started in 2003 with a major study in Orange's six main E ...

In the competitive mobile telecom market combining price reductions with increasing revenues is of high importance. KPN Mobile and SKIM Analytical have conducted several studies in order to identify k ...

Discusses pricing. Pricing problems tend to be due to poor communications. Cost-plus pricing has weaknesses (discussed). Value/CostTM, a six-step systematic approach to pricing, is described. The key ...

Some authors are announcing the dawn of informational era marketing, where the consumer acquires real negotiating power based on access to information that is complete, up to the minute and unbiased. ...

Nick Wredin, author and CEO of FusionBrand, explains the importance of pricing in increasing profitability, boosting branding power and fighting off competitors. He suggests four steps to develop an e ...

Correct pricing has greater impact on profitability than any other factor, yet it is one of the worst managed. Often, price setting over-emphasises costs and competitors and fails to get the right bal ...

As consumer healthcare costs escalate, the pharmaceutical industry continues to lose consumer trust. Pharmaceutical companies can reduce consumers' drug costs as a route to improving the industry's im ...

Supermarkets are heavy users of sales promotion devices and need to be able to assess the effectiveness of these tools. Consumer response (brand switching, purchase acceleration, stockpiling, product ...

In the literature, several methods to measure willingness to pay (WTP) have been proposed. However, there is still little knowledge about their reliability. We empirically test the appropriateness of ...

This paper studies the effects that consumers’ adopted shopping patterns have on their responsiveness to price changes in a heavily contested FMCG category (i.e. coffee). Two dimensions of shopping be ...

This paper demonstrates that branding matters. While this seems to state the obvious, in the context of low involvement categories that are retailer brands strongholds this might be quite provocative. ...

This study investigates from four angles why retail brands are growing. Employing panel and adhoc information collected on some 2,000 categories in 33 countries, the authors uncover reasons for differ ...

Modern trade retail chains and their private labels are some of the most visible elements of the transformation in Central and Eastern European countries in the last 15 years. This paper describes the ...

In today’s business environment in Japan, manufacturers and retailers struggling against excessive price competition find themselves mired in profoundly strained relationships. This paper will bring i ...

This paper describes the consumer behaviour in the cola market. The consumer’s reaction to price changes was the goal of the research study. Based on eight hypothetical buying situations represented b ...

This study provides a theoretical and empirical analysis of the relevance of geodemographic segmentation as a support tool in the definition of an optimal geographic price discrimination strategy on t ...

Stephan Butscher and Balraj Kalsi (Simon-Kucher and Partners) discuss how large companies with strong brands can respond to cheap competition. They show that reducing the brand’s price, or doing noth ...

Review of article in McKinsey Quarterly. Consumers in US and Europe are moving to `value’ in terms of `good enough’ quality plus low prices: evidence the rise of Wal-Mart and the discount retailers su ...

After years of cost cutting, prices and price management is becoming more and more important for improving profitability and shareholder value of OEMs. The optimization of the pricing management there ...

From MIT Sloan Management Review (winter 2004): Sawhney et al, `Adding value through utility’, discusses how to develop add-on services, with examples;

This paper establishes the relevance and need of an appropriate pricing construct (not price per se) in driving the profit growth and illustrates how research feeds into the construct. The same would ...