Alternative retailer pricing. Each retailer offers a wide variety of prices, ranging from cheap to very expensive. For the same brand of goods, the set price may differ from one retailer to another. There are retailers who charge high prices, because they also offer certain services such as an attractive and comfortable store atmosphere. Usually department stores and specialty stores fall into this category. On the other hand, there are also retailers who charge lower…
Products or services sold retailing in the market. Based on these criteria, retailing can be divided into 2 types, namely service retailing and product retailing. 1. Service Retailing There are three types of service retailing, namely rented-goods services, owned goods services and non-goods services. a. Rented-Goods Service In this type, customers rent and use certain products. Examples include car rental, carpet cleaners, video tapes, laser discs, and apartments. In this case, a physical product is…
Retailing sale of goods and services. Retailing is all activities of selling goods and services directly to final consumers for personal and household use, not for business purposes. If a manufacturing institution, wholesaler or retail store sells something to end consumers for non-business use, then it means they have made retail sales. There are four main functions of retailing, namely: Purchase and store items. Transfer the property rights of the goods to the final consumer.…
Definition of marketing distribution, Broadly speaking, distribution can be interpreted as a marketing activity that seeks to expedite and facilitate the delivery of goods and services from producers to consumers, so that their use is in accordance with what is needed (type, quantity, price, place, and when needed). 1. Marketing distribution process In other words, the distribution process is a marketing activity that is capable of: Creating value added products through marketing functions that can…
The basis for determining the selling price. In general, there are two main factors that need to be considered in determining the price, namely the company‘s internal factors and external environmental factors. 1. Company Internal Factors a. Marketing Purpose The company’s main determining factor in pricing is the company’s marketing objectives. These goals can be in the form of maximizing profits, maintaining company survival, gaining a large market share, creating leadership in terms of quality,…
Selling price setting method. Broadly speaking, pricing methods can be grouped into four main categories, namely demand-based, cost-based, profit-based, and competition-based pricing methods. 1. Demand-Based Pricing Method Is a method that emphasizes the factors that influence customer tastes and preferences rather than factors such as costs, profits, and competition. Customer requests are based on various considerations, including: The ability of customers to buy (purchasing power). Willingness of customers to buy. The position of a product…
Special Adjustments to Prices. Special adjustments to list prices consist of discounts, allowances and geographical adjustments. 1. Discounts Discount is a discount given by the seller to the buyer in appreciation of certain activities from the buyer that are pleasing to the seller. Usually this price discount is realized in cash or in kind and is intended to attract consumers. There are four types of discounts, namely quantity discounts, seasonal discounts, cash discounts and trade…
The purpose of setting the selling price. In setting price objectives, producers must link it with the overall company strategy. As for the general purpose of pricing is. 1. Maximizing sales and market penetration To be able to attract the attention of consumers who are the target market, a company should set the lowest possible price. With prices dropping, it will trigger an increase in demand which also comes from competitors’ market share. 2. Maintain…