Chapter 3.

Marketing Mix & Ps

of Marketing - Pricing
Aim
To elaborate on the marketing concepts of ‘Pricing’
and ‘Branding’
Instructional Objectives
After completing this chapter, you should be able to:
• Explain the concept of pricing in marketing

• Describe the factors that influence the pricing decisions

• Describe the various pricing strategies that an organisation can

use
• Explain branding and its importance in marketing

• Explain the difference between branding and marketing

Learning Objective 1
Explain the concept of pricing in marketing
Pricing
Pricing is a sensitive concern that in the customer’s eyes reflects
perceived value in the offering and that must deliver a long term
sustainable competitive advantage to the supplier.
Self Assessment Questions
1. Price represents on a unit basis what the company receives for the product which is being
___________.
a) Marketed
b) Promoted
c) Advertised
d) Branded
2. _______________ is a sensitive concern that in the customer’s eyes reflects perceived value in the
offering and that must deliver a long term sustainable competitive advantage to the supplier.
e) Pricing
f) Rating
g) Assessing
h) Evaluating
Short Answer Questions
1. Define Pricing.
2. Elaborate importance of pricing in marketing.
Learning Objective 2
Describe the factors that influence the pricing
decisions
Factors influencing pricing decisions – Internal & External Factors
Marketing
Nature of the
Objectives market

Marketing Mix Demand for

Strategy the product

Internal External
Factors Factors
Product Cost Competition

Environmental
Organisational Factors
Considerations
Short Answer Questions
1. What are the factors influencing pricing decisions for the start up companies
Learning Objective 3
Describe the various pricing strategies that an
organisation can use
Types of Pricing Strategies with Examples

Penetrative Pricing:
Tata Docomo were first
introduced in the market
at a very low price when
compared to its other
telecom competitors
Economy Pricing: Xiaomi
and Micromax Mobiles
are launching their
products in economy
pricing where they are
taking up a low cost
approach to marketing
Pricing Strategies - Example

Price Skimming:
Samsung Mobiles are coming
up the new range of mobiles.
Where they are planning to
launch Samsung S7 with lot
of attractive features and
design. And the price of this
product will also be high.
Premium Pricing: Apple and
Samsung have unique
features and design, and they
are pricing their products
where their products will be
a first of its kind.
Self Assessment Questions
1. The _______________ tends to be one of the more critical components of the marketing
mix and is focused on generating revenue and ultimately profit for the company.
a) Pricing Strategy
b) Marketing Strategy
c) Promotion Strategy
d) Advertising Strategy
2. _______________ pricing strategy is designed to capture market share.
e) Penetration
f) Premium
g) Economy
h) Price Skimming
Short Answer Questions
1. What do you mean by Pricing Strategy
2. What are the types of pricing strategies used by the Coca Cola
and Pepsi
Learning Objective 4
Explain branding and its importance in marketing
Branding – Definition
Brand
• A brand is a name, term, sign, symbol or design, or a
combination of them, intended to identify the goods,
services of one seller or group of sellers and to
differentiate them from those of competitors
Branding
• Branding is the process by which companies
distinguish their product offerings from competition.
Marketers develop their products into brands which
help to create a unique position in the minds of
customers
Importance of Branding
Promote the uniqueness of the product

Provides benefits that customers desire

Maintaining strong brand means striking balance between continuity in marketing activities

Puts customers at ease

Keep up with competitors by creating points of parity

Building Stronger Brands

Brand Brand Name Brand

Positioning Selection Sponsorship

Brand
Development
Examples of Brand Positioning, Brand Name Selection, Brand
Sponsorship and Brand Development
Self Assessment Questions
1. ________________ is the process by which companies distinguish their product
offerings from competition.
a) Branding
b) Advertising
c) Promoting
d) Marketing
Short Answer Questions
1. Define Brand
2. What is the importance of branding
Learning Objective 5
Explain the difference between branding and
marketing
Difference between Marketing & Branding
Marketing Branding

Marketing is a process through which an organization Branding is a pull tactic and it precedes (i.e., that comes
actively promotes its product or service. It is a push tactic. before) any marketing effort.

Branding helps communicate the characteristics, values and

Through marketing, an organization sends out a message to attributes of the product or brand. In other words, branding
encourage the customers to purchase its product or service. tells the customers about what the product or brand is all
about.

The marketing efforts of an organization, contribute to its

Brand is bigger than any marketing effort of the organization.
brand.

Marketing may convince a customer to buy a product of a Branding will determine whether an individual will become a
particular brand. It just helps the organization to find loyal customer of a brand. It helps build customer loyalty.
customers who will buy the product for the brand.
Short Answer Questions
1. Differentiate between marketing and branding
Activity:
1. Activity Type: Offline Duration: 20 Minutes
Description:
What type of geographic pricing policy is most appropriate for the following products(specify any
assumptions necessary) :
(a) auto spare parts (b) cycles (c) candy bars

2. Activity : Offline
Duration: 20 Minutes
Description:
Cite two examples of continuously selling above market price. Describe the situations.
Long Answer Questions
1. Explain the difference between Branding and Marketing
2. Explain the various pricing strategies that are used by the organisations
Summary
 A price is defined as a value that will help an individual purchase a finite quantity of a
product or service. It forms the basis for commercial transactions.
 Pricing is the method adopted by an organization to set a selling price for its product or
service.
 A brand is a name, sign, logo, design, or a combination of all these, that helps the
customer to identify the manufacturer of the service or product.
 Branding is the process of creating a unique name and image for a product or service, in
the consumers’ mind.
 The marketing efforts of an organization, contribute to its brand. But the brand is bigger
than any marketing effort of the organization.
 Marketing may convince a customer to buy a product of a particular brand. But
branding helps build customer loyalty.
 Branding is the core of an organization’s marketing strategy.
E-References
1. Pricing Strategies – Marketing Teacher. (2016). Marketingteacher.com.
Retrieved 21 March 2016, from
http://www.marketingteacher.com/pricing-strategies/
2. Pricing Strategies Definition | Pricing Strategies Meaning - The
Economic Times. (2016). The Economic Times. Retrieved 21 March
2016, from http://economictimes.indiatimes.com/definition/pricing-
strategies
3. What is pricing strategy? definition and meaning. (2016).
BusinessDictionary.com. Retrieved 21 March 2016, from
http://www.businessdictionary.com/definition/pricing-strategy.html
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