Module 3 preparation of business plan

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Functions of branding:

  • Brands make product identification easier.

  • They distinguish one product from another so that imitations can be prevented

  • They are used to emphasize a certain quality level and facilitates setting different prices for each level

  • They make branding easier because traders could sort the products they are carrying the brands.

C. Packaging – the total presentation of the product
`Benefits from packaging:

B. Price – Once a concrete understanding of the product offering is established we can start making some pricing decisions. Price determinations will impact profit margins, supply, demand and marketing strategy. Similar (in concept) products and brands may need to be positioned differently based on varying price points, while price elasticity considerations may influence our next two Ps.

Pricing strategy

  • It is considered as the most important function since it is the only function which lets money flow back to the business.

Steps in Price Setting
1. Set pricing objective
2. Determine demand
3. Determine cost
4. Analyze competitor’s prices
5. Evaluate pricing models
6. Select the price
Retailer’s Pricing Strategies:

    • set prices to be near or equal to those in other stores for products bought at regular or irregular basis

  • Psychological pricing

    • The use of odd-centavo pricing such as P4.91, P4.95, P4.97 or P4.99 instead of P5.00.

    • These prices are understood by the customer to denote minimum price more than mere quality available in the market price.

  • Unit pricing

    • setting prices to gain volume is through pricing items in units of two or more. This quoting a product as 2 for P8.99 results to large purchases.

  • Price lining

    • Offering two or more classes of the same product at different prices. By separating same products into two or more groups and placing a high price on the better lots even though the cost is the same, profits can be increased.

  • Special prices

    • pricing on items to be offered on special occasions

C. Promotion – We’ve got a product and a price now it’s time to promote it. Promotion looks at the many ways marketing agencies disseminate relevant product information to consumers and differentiate a particular product or service. Promotion includes elements like: advertising, public relations, social media marketing, email marketing, search engine marketing, video marketing and more. Each touch point must be supported by a well-positioned brand to truly maximize return on investment.

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