SOCIAL MARKETING
Price
10-1
Whirlpool’s Duet
combo is nearly
four times the
price of
comparable
models
14-2
Price = Value Proposition
COST
• $2.50
BENEFITS
• Thirst-quenching drink
• A caffeine boost = “Wings”
More than twice the cost of average • Perception of being
12oz. soda and only 8.3 ounces
– Energetic
– Cool
– Edgy
Not usually found in vending
– Risk-taker
machines
• More time / effort
14-3
Social Marketing
Does the concept of “price” apply?
If so, how?
• What does the behavior change “cost” the person
• What is the perceived VALUE?
14-4
Social Marketing
With most social issues the primary
“price” is an intangible costs such as:
• Peer acceptance
• Cool factor
• Time
• Effort
• Enjoyment
• Embarrassment / Psychological toll
• The “cost” of acquiring the product/service
14-5
“Free” gifts from my wife
14-6
But my wife won’t wear these!
14-7
Price = Value Proposition
COST
• Money
• Time
• Discomfort
BENEFITS
• Sense of security /
control
• Avoidance of
greater discomfort
(sickness)
• Ability to go to
school, work,
• Travel
14-8
Basic Strategy
• What is the Perceived Cost?
• What are the Perceived Benefits ?
• How can we make the Benefits
outweigh the Price ???
14-9
Cost Benefit calculus
• -----------------------------
14-10
Cost-benefit calculus
14-11
Cost-benefit calculus
14-12
Cost-benefit calculus
14-13
Consider: What’s your Objective?
• Survival
• Maximum share
• Market skimming
• Product-quality
leadership
14-14
Price-Adaptation Strategies
Geographical Pricing
Discounts/Allowances
Promotional Pricing
Differentiated Pricing
14-15