MKTG 2030 Lecture 6: Marketing 2030 chapter 6
19 Apr 2016
School
Department
Course
Professor
Document Summary
Pricing is a manager"s biggest marketing headache and where they feel most intense pressure but yet they feel less confident about whether they are doing a good job in this arena. Price is a key marketing decision that any business has to make. The reasons behind this are: price is your reward: every business wants to differentiate itself from its competitors by building a strong brand. Low prices reflect undifferentiated brands and market strategies. Me too (undifferentiated brands) cannot command price premiums. An example of a company that follows such a reason is lululemon. This company which opened up in 1999 has grown into a global presence now. It does not do traditional advertising like any other company on television, radio through commercials and no newspaper campaigns. It relies heavily on word of mouth and generates buzz by supplying yoga teachers and fitness instructors free clothing and encouraging these ambassadors to spread the word.
