Modern retailing has entered India in form of malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Pyramid, Pantaloon.
1) Challenges faced by mall:-
There are many challenges facing many shopping malls just like any other business.
How to bring more footfall
How to keep cost low
How to ensure there is enough parking lot
How to bring quality tenants and customers
How to attract talented people to join their organizations
How to adapt
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Basic Pricing Methods
Once you have data in hand, apply one or more pricing methods to the specific business and market:
Cost-Plus: Production costs are determined and then a target profit margin is applied. For example, if a product costs $10 to manufacture, and the business wants to make a 20% profit, the price is $12 per unit.
Targeted Return: Investment costs are determined, and a targeted rate of return is applied to deliver the required return on investment. For example, if investment costs are estimated to be $5 per unit, and investors seek a 10% return on investment, the price is $5.50 per unit.
Value: The value customers receive is calculated and pricing is applied accordingly. For example, if a personal session with a business advisor provides the same value as a two-day seminar, the personal session could be priced at the same level (or higher if individual attention and mentoring provides an even greater value than group-based
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Promotional strategies will depend on the size, situation and specialties of the centre. When planning the annual strategy, it is important to ensure that the correct timing and mix of promotions is taken into consideration. When planning, it is imperative to take into consideration religious holidays, public holidays, and school holidays. Provision should also be made for major merchandising opportunities and low trading periods must not be forgotten. Before any promotional proposal is accepted, the marketing manager should be satisfied that it will be promoted and advertised adequately so that it will draw additional shoppers to the centre. It may be advisable to issue instructions on the format of advertising posters. Advertising is very necessary to support promotions. Promotion depends on heavy advertising and public relations to build brand awareness and educate shoppers on the product’s benefits. advertising is the key component of a promotion and is usually one of the most visible elements of a marketing communications program. Advertising is paid, nonpersonal communication transmitted through media such as television, radio, magazines, newspapers, direct mail, outdoor displays, the internet, and mobile devices. Internet advertising is the fastest growing medium, while traditional media such as newspapers, radio, and magazines are struggling with meaningful declines in ad revenues. Because
Their price must be one that is attainable and reasonable for the offerings. The Kotler & Keller text suggests that facilities analyze competitors and their offerings, estimate their own costs, and determine demand, in order to set the appropriate price.
A couple of Squares has a limited capacity for which to produce their products and smaller companies tend to have larger fixed costs than bigger companies. Therefore, A Couple of Squares must maximize profits in order to ensure that they will stay in business. A profit-oriented pricing objective is also useful because of A Couple of Squares’ increased sales goals. A Couple of Squares increased their sales goals due to recent financial troubles. Maximizing profits is the easiest way to meet these sales goals due to the fact that A Couple of Squares has limited production capacity. The last key consideration favors a profit-oriented pricing objective because A Couple of Squares offers a specialty product. A specialty product often has limited competition, therefore can be priced on customer value. Pricing at customer value will maximize profits as well as customer satisfaction. A Couple of Squares’ lack of production capacity, increased sales goals, and specialty product favor a profit-oriented pricing
..., M. A., Kerr, G.E., & Powell, I. (2012). Advertising and promotion. An integrated marketing communication perspective. North Ryde, N.S.W.,Australia: McGraw-Hill Aust. Pty. Ltd.
Calculating the right price for a product can be difficult, mostly because it will affect Calibrated’s bottom line. Increasing the price of a product to maximize profit can induce several risks to a company. For example, making a change to the fixed or variable costs, the number of units sold will have an impact on the company’s profitability. Increasing the unit cost of a product and decreasing the number of units sold will have a negative impact on the
As we learned from Chapter 12, price must be carefully determined and match with firm’s product, distribution, and communication strategies. (Hutt & Speh, 2012, p. 300) Therefore, there should be a strong market perspective in pricing. In order to build an effective pricing policy, marketers should focus on the value a customer places on a product or service. One of the most effective ways to do so is differentiating through value creation.
Advertising is now as a communication strategy in order to construct consumer’s actions and beliefs about their desire of the products. Most companies will hire advertisement department to promote their products through a creative advertising. However, advertisement not only promotes products for companies but also could influence their sale since the competitive marketing all over the world. All of the companies use advertising to promote their products, therefore, the job of advertisement companies in order to use advertising as a communication strategy and transfer its valuable message to consumers. Since the advertising marketing has become extensive and competitive, for most advertisement companies, the only way to attract audience’s attention is to be more
Cost-plus pricing, it the industry pricing standard, and is a method to determine a price of the product by finding the cost per unit and then including a mark-up
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
When it came to output, our goal was to set production as close as possible to firm demand. We were off our amount by an excess supply of 279 units while the best firm was on the money at selling 6,003 units. The excess supply is considered our opportunity cost. From our eTexbook, we learned that the supply decisions affect the production and cost of goods while demand directly affects the quantity of units demanded (Asarta, 2016). In order to attain an effective output decision, we had to have our marginal revenue equal to our marginal costs. The process improvements decision relates to how efficiently we operate our capital and labor. Our process improvements did not change in quarter one. Next, we raised our plant size in quarter 1 to achieve lower costs which then provide economies of scale but according to the BTM manual, plant size changes do not occur immediately; hence why all three firms had a plant size of 9 in quarter 1 (Gold, 2012). Lastly our product development costs increased from $3,840 to $4,000. The purpose of product development is to cultivate, maintain and improve the quality of our products to increase market share by satisfying consumer’s
12. Raman, K., and Naik, P.A., (2005), Integrated Marketing Communications in Retailing, [online] Available at: http://ramanassoc.com/yahoo_site_admin/assets/docs/IMC_in_Retailing.26100503.pdf, Accessed on: 1st April 2014
Pricing is the other major factor in attracting the consumer to the business. We can have better pricing with in depth price analysis between each supplier and vendor. Finding the best price to quality ratio is necessary for receiving the highest profit return rate. We want the upper hand on our competition, and having more capital will allow us to spread the expenses to fulfill every need greatly. An article exampling the objectives of analyzing pricing with suppliers states, “The objective of analyzing prices and costs is to determine whether the price is equitable and/or competitive in that is it reasonable in terms of the market, the industry, and the end use of the goods or services purchased” (Selecting a Vendor 2011). Cheaper pricing with good quality is the edge we will have on the competition.
Marginal Cost is the value that a company is disposed to invest in order to produce one more unit of a good.
Value is perceived in different ways, by customers and organisations in relation to the product or service that is provided. The definition of value is what something is worth and the desirability. Also what is gained from the money aspect, and to whether the product or service actually fulfils its purpose.
According to Shimp (2007), there are five important factors which determine the purpose of advertisement in terms of marketers’ communication with consumers. He listed these five factors as follows: “(1) informing, (2) influencing, (3) reminding and increasing salience, (4) adding value, and (5) assisting other company efforts.” (p.246). To clarify that, the first most important aspect is informing people which means company needs to enhance the awareness of the consumer about their products by mentioning its advantages and features. Advertising also affect the products in two ways. Firstly, by basic demand, which build consumer desires for old products of the company and secondly, refers to a new brand of the company. In addition, effective advertising can retain consumer’s mind fresh about the image of a brand which develops the trace of the memory where consumers have to choose between two or more products. Moreover, it may change the product quality, create new, well-designed and elegant product and change consumers view towards the product. Lastly, by effective advertising program, company may save money and time as s...
Cost optimization: Determine the product costs by tracing detailed cost using analytical tools. To maximize profit by detect precise cost of products, optimize margins by inventory valuation.