Marketing and Marketing Communications Essay Example | Topics and Well Written Essays - 1500 words

Marketing and Marketing Communications - Essay Example Raising visibility requires the same press release appearing in all credible newspapers, the same commercial over all television channels, the same radio jingle over all radio channels, similar hoardings in all important shopping malls etc. Credibility calls for faultless service to the customer. It requires adherence to quality and reliability. Recently Honda Motor Company, Japan's second largest auto maker, recalled 298,231 cars in Japan to repair a fault in the fuel pump relay that could have stopped the engine. In the recent past Microsoft launched its Windows Vista operating software amidst much fanfare and media glare, which raised the level of visibility for the product. Part-II (Three questions to be answered out of six) Ans-2: Internal and External factors influencing Pricing decisions Pricing is a very crucial aspect for managing the business. While carrying out the pricing decisions, a company has to take a comprehensive look at all its internal factors as well as the prevailing market scenario, economic policies and legal framework for the market and the product. Most of the companies begin pricing deliberations based on their own internal cost structures. Internal factors affecting the pricing decisions are basically the profit and cost factors. How the company arrives at the total cost of the product and how much profit is expected from the product makes. In general costs are divided in two components fixed costs and variables costs. Costs of labor, material, energy, supervision, R&D contribution, marketing, administrative, transportation, taxes, channel costs, factory overhead etc. are some of the internal cost components which form part of the pricing decision. On the other hand external factors affecting...While carrying out the pricing decisions, a company has to take a comprehensive look at all its internal factors as well as the prevailing market scenario, economic policies and legal framework for the market and the product. Most of the companies begin pricing deliberations based on their own internal cost structures. Internal factors affecting the pricing decisions are basically the profit and cost factors. How the company arrives at the total cost of the product and how much profit is expected from the product makes. In general costs are divided in two components fixed costs and variables costs. Costs of labor, material, energy, supervision, R&D contribution, marketing, administrative, transportation, taxes, channel costs, factory overhead etc. are some of the internal cost components which form part of the pricing decision. On the other hand external factors affecting pricing decisions include the existing pricing strategy resorted to by the competitors/ alternative products, market profile, customer's buying power, geographical conditions, economic policies prevailing in the country/ market, legal provisions for carrying out business in the market, acceptability of the product in the market, number of competitors and their profit margins etc. Tender Pricing: This type of pricing is based on actual costs of different sub tasks in producing the product.