CHAPTER.8- INTERGRATED MARKETING & PRICING
3.
Design and advertising massage and choose the media
for transmitting it.

Pricing - for example, you might aim simply to match the
competition, or charge a premium price for a quality product
and service. You might have to choose either to make
relatively few high margin sales, or sell more but with lower
unit profits. Remember that some customers may seek a low
price to meet their budgets, while others may view a low
price as an indication of quality levels.

Place - how and where you sell. This may include using
different distribution channels. For example, you might sell
over the internet or sell through retailers.

Promotion - how you reach your customers and potential
customers. For example, you might use advertising, PR,
direct mail and personal selling.
Life cycle:
stage
Introduction
Growth and
acceptance
Maturity
and
competitor
Market
saturation
Product
decline
Description
-product or service must break into the
market & overcome customer ( marketers
present their product to potential customer)
-advertising and promotion help the new
product, how to use it, the need it can satisfy.
-cost- high ( company overcome customer
resistance and inertia)
-profit (low or negative)
-customer begin to purchase a product in
large enough numbers for sale to rise and
profits to materialize.
-at intro fail-the product not sell and
disappear from market place.
-at intro success- sales and profit margins
continue to rise trough the growth stages
-sales rise but profit peak and then fall far as
competitor enters the market.
-reduction in product selling price to meet
competition and to hold it share of the
market.
-sales peak, indicating the time to introduce
the next generation product.
-product lifecycle and give the marketer fair
warning that is time to introduce next
generation of product.
-Sales continue to fall and profit margin
decline drastically.
-it doesn’t mean product failure
-product have remained popular always being
revised (must through innovation & change)
Introduction new product:
3 goals:
1. Getting the product accepted
2. Maintaining market shares as competition grows
3. Earning profit
3basic strategy:
1. Penetration- based on building market share rapidly to
drive down costs(introduce the product with a low
price)
2. Skimming- setting a high price when introducing a new
technology
3. Sliding down the demand curve-the small company
introduces a product at a high price.
Pricing technique:
1.Odd- pricing: establish prices that end in odd numbers (5,7,9)
because they believe that merchandise selling for $12.95 appears
much cheaper than the same item priced at $13.00. Designed to
appeal to certain customers interests.
2. Price Lining: Stocks merchandise in several different price
ranges, or price lines. Each category of merchandise contains
items that are similar in appearance, quality, cost, performance,
or other features.
3. Leader Pricing: small retailer marks down the customary price
of a popular item in an attempt to attract more customers. The
company earns a much smaller profit on each unit because the
markup is lower, but purchases of other merchandise by
customers seeking the leader item often boost sales and profits.
4. Geographical Pricing: Small businesses whose pricing decisions
are greatly affected by the costs of shipping merchandise to
customers across a wide range of geographical regions frequently
employ one of the geographical pricing techniques
5. Opportunistic Pricing: When products or services are in short
supply, customers are willing to pay more for products they need.
6. Discounts: Reduction from normal list prices – to move stale,
outdated, damaged, or slow-moving merchandise
7. Suggested Retail Price: Many manufacturers print suggested
retail prices on their products or include them on invoices or in
wholesales catalogs.
Marketing tactic:
Marketing communication plan step:
1. Create specific, measurable objective
2. Identify and analyze the target audience

Product - what your product offers that your customers
value, and whether/how you should change your product to
meet customer needs.
CHAPTER.7 E-COMMERCE
Factor:
•
Developing a deep, lasting relationship with customers
takes on even greater importance on the Web.
•
Creating a meaningful presence on the Web requires
an ongoing investment of resources – time, money,
energy, and talent.
•
Measuring the success of a Web-based sales effort is
essential to remaining relevant to customers whose
tastes, needs, and preferences constantly change.
•
Web success requires a company to develop a plan for
integrating the web into its overall strategy.
Myth:
Myth 1: Setting up a business on the Web is easy and
inexpensive – A Web site can result in additional costs for site
redesign, hardware requirements, and other implication to the
infrastructure of the business
Myth 2: If I launch a site, customers will flock to it-Promoting the
site is important and needs to become an integral part of the
overall promotional strategy.
Myth 3: Making money on the Web is easy-Web retailers invest
65 percent of revenue in marketing and advertising, compared to
just 4 percent for their off-line counterparts.
Myth 4: Privacy is not an important issue on the Web- Internet
users value their privacy and this concern has a negative impact
on online sales.
Myth 5: The most important part of any e-commerce effort is
technology - Other factors influence online buyer behavior more
than technology alone.
Myth 6: “Strategy? I don’t need a strategy to sell on the Web!
Just give me a Web site, and the rest will take care of itself.”
Having a plan for the role your site will play in your business is
critical to ensure it is a solid investment and that it complements
and supports all other aspects of your business.
CHAPTER.13 –SOURCE OF FINANCING
Strategy:
•
•
•
•
•
•
•
•
Consider focusing on a market niche.
Develop a community.
Attract visitors by giving away “freebies.”
Make creative use of e-mail, but avoid becoming a
“spammer.”
Make sure your Web site says “credibility.”
Consider forming strategic alliances.
Make the most of the Web’s global reach.
Promote your site online and offline.
ADV&DiSADV
ADV
•
Opportunity to
increase revenues
•
Ability to expand
into global markets
•
Ability to remain
open 24 hours a
day, seven days a
week
•
Capacity to use the
Web’s interactive
nature to enhance
customer service
•
Power to educate
and inform
•
Ability to lower the
cost of doing
business
•
Ability to spot new
business
opportunities and
capitalize on them
•
Ability to grow
faster
•
Power to track sales
results
DISADV

Any one, good or bad,
can easily start a
business. And there
are many bad sites
which eat up
customers’ money.

There is no guarantee
of product quality.

Mechanical failures
can cause
unpredictable effects
on the total processes.

As there is minimum
chance of direct
customer to company
interactions, customer
loyalty is always on a
check.

There are many
hackers who look for
opportunities, and
thus an ecommerce
site, service, payment
gateways, all are
always prone to attack
equity capital
Represent the
personal
investment of the
owner in the
business
Risk capital(investor
assumes the risk of
losing their money if
the business failed)
Does not have to
repaid with interest
like a loan does.
Entrepreneur give
up some ownership
in the company to
outside investor
dept capital
Must be repaid with
interest
Carried as a liability
on the company’s
balance sheet
Can be just as
difficult to secure as
equity financing,
even through
source of depth
financing are more
numerous
Can be expensive
for small company
because the
risk/return trade off
Sources of equity financing:
1- Personal savings: outside investor and lenders expect
entrepreneurs to put some of their own capital into
business before investing their
2- Friends & family members: after emptying his pocket,
an entrepreneur should turn to those most likely to
invest in the business.
3- Angels: private investigators who back emerging
entrepreneurial companies with their own.
4- Corporate venture capital: capital infusions are just
one benefit; corporate partners may share marketing
and technical expertise.
5Going public: Initial Public Offering(IPO)—when the
company raises capital by selling shares of its stock to
the public for the first time.
Sources of dept capital:
1. commercial banks
2. asset-based lenders
3. trade credit
4. equipment suppliers
5. commercial finance company
6. saving and loan association
7. stock brokerage house …etc