Pricing Strategy In Marketing

Promotion

"The most common promotion is a sale" (Levy & Weitz, 2007 p 433). Promotion is one of the key P's in the marketing mix (Dibb et al., 1994).

The promotion strategy is used in increasing sales by creating differences in resources which results in a firm being able to outspend a competitor in advertisement, purchase displays, trade shows and other promotional methods (Rea & Kerzner, 1997 p. 58).

* According to Jennifer Rowley (1998), the objectives of any promotional strategy will be drawn from an appropriate mixture of the following roles of promotion; to:

• increase sales;

• maintain or improve market share;

• create or improve brand recognition;

• create a favorable climate for future sales;

• inform and educate the market;

• create a competitive advantage, relative to competitor's products or market position;

• improve promotional efficiency

* According to Jennifer Rowley (1998), an appropriate promotional mix must be created in order to meet the promotional objectives of

Various roles of Pricing

(Cravens & Piercy, 2006 p 320) Pricing has few important roles in the marketing program of a company. Some of the roles are:

Signal to the buyer

Price is the easiest way to directly communicate with the customer. When comparing with other brands price is a visible difference to the customer. Price is also used in positioning the brand to show its quality or instead give direct competition with other brands (Cravens & Piercy, 2006 p 320).

Instrument of competition

As the competitions between companies are high, Price is an element which can quickly attack competitors. Price can also be used by a company to stay away from the competition if used strategically; pricing strategy is always related to competition with other brands or companies (Cravens & Piercy, 2006 p 320).

Improving financial