|← Ethical Issues||The Ethical Violation of WorldCom →|
Buy custom Group Project essay
The goal of promotion is informative because proposed hair treatment cap is a new product. In promotional mix, personal selling can be used. It is popular for cosmetics (Riley, 2012). In such case, hair treatment cap can be offered personally to consumers, and advices about its usage can be given. In advertising, it would be wise to show a pleasant appearance, for example, beautiful hair after using the cap. It encourages consumers to try the new product because they believe their hair will become such, too. It is also positive to refer to clinical studies in the advertising (How Does Cosmetics Advertising Work? n. d.).
In integrated marketing communication, it would be positive to use mobile marketing, email marketing, and content marketing. Those forms are quite new, but many modern people use them. Therefore, such IMC is likely to address too many potential customers. The factors that affect the promotional mix are different. The nature of the product encourages to use personal selling. Sales promotion is important because the hair treatment cap is on the introduction stage of its life cycle.
A push strategy can be provided via the special package design. It can be made unusual to attract consumers. However, it is important to remain the brand Mukti recognizable on the package. A pull strategy can be provided by using the advertising of hair treatment cap in large cosmetics shops (Magloff, n. d.). The type of advertising to be used is product advertising. Institutional advertising is not appropriate because a new product should be promoted, not a company (Types of Advertising: Insitutional and Product Advertising, n. d.). Different media types can be used for advertising. It can be provided via TV, radio, magazines, newspapers, etc. Outdoor and shops advertising can be used, too.
The main pricing objective to be considered is sales objective. As the hair treatment cap is a new product, it is important to maximize sales in the nearest future (Uhlig, n. d.). Target market’s perception of value is likely to expect the price to be medium because the product is recently minted. Too low price will make consumers think that the product is of low quality. Too high price will discourage them from buying a previously untested product. As for the competitors of Mukti, most cosmetics companies prefer multi-branding and tiered pricing because it helps to reach the consumers with different tastes, preferences, and income levels (Jian, 2011). The pricing of hair treatment cap should be competition because the product is new and it is important to set a market share for it. Penetration pricing strategy can be used. It would help to attract more customers by offering a relatively low price when entering the market (Richards, n. d.). The final price to be set should be determined by studying the competitors’ prices with regard to pricing objectives. It should be a bit lower than the competitors’ prices.
Concerning the determinants of price, the demand for a certain good and the cost of that good are the main determinants. Apparently, if the demand for Mukti cosmetics is sluggish, the company will have to make appropriate changes to its pricing strategy. If the demand is brisk, Mukti will be sellling more and prices will go down. According to Lamb et al. (2012), some companies tend to downplay the importance of the demand determinant and price their products based on costs. Yet, prices based on costs can be too high for the target market, and the company will flounder (Lamb et al., 2012). Although it is important to consider costs when pricing products, this factor should be handled carefully. Other determinants that should be taken into consideration range from the competition and perceived quality of the product to distribution and promotion strategies (Lamb et al., 2012). Basically, an effective price-setting process comprises four steps. First, it is necessary to establish clear pricing goals. Next, demand, costs and profit should be evaluated (Lamb et al., 2012). Third, an appropriate price strategy that could help marketers to determine a base price must be chosen. Last but certainly not least, the base price needs to be fine-tuned with pricing tactics.
It is important to fine-tune the base price. It can be changed by using different fine-tuning tactics. It is possible to lower the basic price in order to attract more consumers. Quantity discounts can be used. For instance, if a customer buys three caps, he/she has a 10% discount. Cumulative quantity discounts can be used for those who buy the product regularly. For example, if a customer buys five caps during a month, he/she gets a 10% discount for the fifth one. It is significant to use promotional allowances. For example, Mukti can pay cosmetics dealers for promoting its hair treatment cap. Functional discounts can be offered to wholesalers and retailers to encourage them to buy more products for sale (Lamb et al., 2012).