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 Module No. 3: 

Product and Pricing Strategy

Product 

Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a -want or need. It includes physical objects, services, persons, places, organizations and ideas.

Unit 4 Marketing channels and promotional strategy New

Product Levels

Product planners need to think about the product on three levels. The most basic level is the core product, which addresses the question: What is the buyer really buying? The core product stands at the centre of the total product. It consists of the problem-solving services or core benefits that consumers seek when they buy a product.The product planner must next build an actual product around the core product. Actual products may have as many as five characteristics: a quality level, features, styling, a brand name and packaging.Finally, the product planner must build an augmented product around the core and actual products by offering additional consumer services and benefits.

Three levels of product

1.Core product/Core benefits 

They are the problem-solving services or core benefits that consumers are really buying when they obtain a product.When developing products, marketers must first identify the core consumer needs that the product will satisfy.Consequently, at the very heart of all product decisions is determining the key or core benefits a product will provide. From this decision, the rest of the product offering can be developed. 

2.Actual product 

It is a product's parts, quality level, features, design, brand name, packaging and other attributes that combine to deliver core product benefits.The core benefits are offered through the components that make up the actual product that the customer purchases. For instance, when a consumer returns home from shopping at the grocery store and takes a purchased item out of her shopping bag, the actual product is the item she holds in her hand. Within the actual product is the consumable product, which can be viewed as the main good, service or idea the customer is buying. For instance, while toothpaste may come in a package that makes dispensing it easy, the Consumable Product is the paste that is placed on a toothbrush.

3.Augmented product 

Additional consumer services and benefits built around the core and actual products.Marketers often surround their actual products with goods and services that provide additional value to the customer‘s purchase. While these factors may not be key reasons leading customers to purchase (i.e. not core benefits), for some, the inclusion of these items strengthens the purchase decision while for others failure to include these may cause the customer not to buy.

Classifying products

Classifying products is a good way for marketers to understand how to market a particular product to their customers. Classifying a product will let them determine the optimal method for distribution, promotion, and pricing. How a product is ultimately classified will determine how it will be marketed and sold to its customers.

Marketers have also divided products and services into two broad classes based on the types of customer that use them - consumer products and industrial products.

1.Consumer Products 

Consumer products are those bought by final consumers for personal consumption. Marketers usually classify these goods based on consumer shopping habits. Consumer products include convenience products, shopping produces, speciality products and unsought products. 

i) Convenience products are consumer goods and services that the consumer usually buys frequently, immediately and with a minimum of comparison and buying effort. They are usually low priced and widely available. Examples are soap, sweets and newspapers. Convenience goods can be divided further into staples, impulse goods and emergency goods. Staples are goods that consumers buy on a regular basis, such as milk, bread etc  Impulse goods are purchased with little planning like chocolate bars and magazines 

Emergency products are purchased when a need is urgent - umbrellas during a rainstorm. 

ii)Shopping products are less frequently purchased and consumers .spend considerable time and effort gathering information and comparing alternative brands carefully on suitability, quality, price and style. Examples of shopping products are furniture, clothing, used cars and major household appliances. 

ii)Speciality products arc consumer goods with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Examples are specific brands and types of car, high-priced home entertainment systems, photographic equipment and luxury goods. 

ii)Unsought products are consumer goods that the consumer either does not know about or knows about but does not normally think of buying. Most major innovations are unsought until the consumer becomes aware of them through advertising. Other examples of known but unsought goods are life insurance, home security systems etc. By their very nature, unsought goods require a lot of advertising, personal selling and other marketing efforts. 

2.Industrial Products 

Industrial products are those bought for further processing or for use in conducting a business. Thus the distinction between a consumer product and an industrial product is based on the purpose for which the product is purchased. If a consumer buys a lawn mower for home use, the lawn mower is a consumer product. If the same consumer buys the same lawn mower tor use in a landscaping business, the lawn mower is an industrial product.

There are three groups of industrial product: Materials and parts, Capital items and Supplies and services.

i)Materials and parts are industrial goods that become a part of the buyer's product, through further processing or as components. They include raw materials and manufactured materials and parts. Raw materials include farm products (wheat, cotton, livestock, fruits, vegetables) and natural products (fish, timber, crude petroleum, iron ore).Manufactured materials and parts include component materials (iron, yarn, cement, wires) and component parts (small motors, tyres, castings). Component materials are usually processed further - for example,  yarn is woven into cloth. 

ii)Capital items are industrial products that help in the buyers' production or operations. They include installations and accessory equipment. Installations consist of buildings (factories, offices) and fixed equipment (generators, drill presses, large computers, lifts). Accessory equipment includes portable factory equipment and tools (hand tools, lift trucks) and office equipment (fax machines, desks). 

iii)Supplies and services are industrial products that do not enter the finished product at all. Supplies include operating supplies (lubricants, coal, computer paper) and repair and maintenance items (paint, nails, brooms). Supplies are the convenience goods of the industrial field because they are usually purchased with a minimum of effort or comparison. Business services include maintenance and repair services (window cleaning, computer repair) and business advisory services (legal, management consulting, advertising). These services are usually supplied under contract. 

 Product Range

A company that has specialized in some set of products or services can provide with different variations of the products known as product range in order to appeal a large set of customers. Having a complete portfolio of products with enough variety in taste, size, colour or functionality will help the company attract different kind of customers and hence get a higher reach.

Product Line

 A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlet, or fall within given price ranges. For example,  Philips produces several lines of hi-fi systems and Nike produces several lines of athletic shoes. 

Product Mix

Some companies may offer, not one, but several lines of products which form a product mix or product assortment.Product mix, also known as product assortment or product portfolio, refers to the complete set of products and/or services offered by a firm. A product mix consists of product lines, which are associated items that consumers tend to use together or think of as similar products or services.

A company's product mix has four important dimensions: width, length, depth and consistency.The width of the product mix refers to the number of different product lines the company carries .

The length of product mix refers to the total number of items the company carries, .The depth or number of versions offered of each brand or product in the line can also be counted. The consistency of the product mix refers to how closely related the various product lines are in end use. production requirements, distribution channels or some other way. 

Product Life cycles

1.Introduction Stage 

The introduction stage starts when the new product is first launched. Introduction takes time, and sales growth is apt to be slow.  In this stage, as compared to other stages, profits are negative or low because of the low sales and high distribution and promotion expenses.  Promotion spending is relatively high to inform consumers of the new product and get them to try it. Because the market is not generally ready for product refinements at this stage, the company and its few competitors produce basic versions of the product.

2. Growth Stage:

If the new product meets market needs , it will enter a growth stage, in which sales will start increasing quickly.  Prices remain where they are or fall only slightly. Companies keep their promotion spending at the same or a slightly higher level.  Profits increase during the growth stage, as promotion costs are spread over a large volume and as unit-manufacturing costs fall. 

The firm uses several strategies to sustain rapid market growth such as improves product quality and adds new product features and models.   In the growth stage, the firm faces a trade-off between high market share and high current profit. 

3. Maturity Stage:

At some point, a product's sales growth will slow down and the product will enter a maturity stage which normally lasts longer than the previous stages Most products are in the maturity stage of the life cycle, and, therefore, most of marketing management deals with the mature product. The slowdown in sales growth results in many producers with many products to sell.

Product managers should  stretch their imagination and look for new ways to innovate in the market.

4. Decline Stage:

The sales of most product forms and brands eventually dip. The decline may be slow or rapid, depending on the product. Sales may plunge to zero, or they may drop to a !ow level where they continue for many years. This is the decline stage. 

Sales decline for many reasons, including technological advances, shifts in consumer tastes and increased competition. As sales and profits decline, some firms withdraw from the market. Those remaining may reduce the number of their product offerings or drop smaller market segments or they may cut the promotion budget and reduce their prices further.

New Product Development

Product innovation encompasses a variety of product development activities - product improvement, development of entirely new ones, and extensions that increase the range or number of lines of product the firm can offer.By new products we mean original products, product improvements, product modifications and new brands that the firm develops through its own research and development efforts.

New-Product Development Process

The new-product development process for finding and growing new products consists of nine main steps 

1.New-Product Strategy Effective product innovation is guided by a well-defined new-product strategy. The new-product strategy achieves four main goals: 

First it gives direction to the new-product team ,second, it helps to integrate departmental efforts; third,it allows tasks to be delegated to team members, who can be left to operate independently; and fourth, the very act of producing and getting managers to agree on a strategy 

2.Idea Generation

The PIC should then direct the search for new-product ideas. Idea generation should be systematic .A company typically has to generate many ideas in order to find a few good ones.To obtain a flow of new-product ideas, the company can tap many sources. Chief sources of new-product ideas include internal sources, customers, competitors, distributors and suppliers

3.Idea Screening

The purpose of  idea screening is to spot good ideas and drop poor ones as soon as possible. As product development costs rise greatly in later stages, it is important for the company to go ahead only with those product ideas that will turn into profitable products.

4.Concept Development and Testing 

Attractive ideas must now be developed into product concepts. It is important to distinguish between a product idea, a product concept and a product image. A product idea is an idea for a possible product that the company can see itself offering to the market.

5.Marketing Strategy Development

Marketing strategy is the marketing logic the business unit  uses to achieve its marketing objectives.The marketing strategy statement consists of three parts. The first part describes the target market, the planned product positioning, and the sales, market share and profit goals for the first few years.

6.Business Analysis 

Business analysis involves a review of the sales, costs and profit projections for a new product to find out whether they satisfy the company's objectives. If they do, the product can move to the product development stage

7.Product Development

Developing the product concept into a physical product in order to ensure that the product idea can be turned into a •workable product

 If the product concept passes the business test, it moves into product development. Here, R & D or engineering develops the product concept into a physical product. The R & D department will develop one or more physical versions of the product concept. 

8.Test Marketing

Test marketing gives the marketer experience with marketing the product before going to the great expense of full introduction. It lets the company test the product and its entire marketing programme in real market situations. The company uses test marketing to learn how consumers and dealers will react to handling, using and repurchasing the product. The results can be used to make better sales and profit forecasts

9. Commercialization

 Test marketing gives management the information needed to make a final decision about whether to launch the new product. If the company goes ahead with commercialization - that is, introducing the new product into the market - it will face high costs. 

The company must decide where to launch the new product.Within the roll-out markets, the company must target its distribution and promotion to customer groups who represent the best prospects.

Adoption-  The decision by an individual to become a regular user tit the product

Adoption process The mental process through -which an individual passes from first hearing about an innovation to,final adoption.

Stages in the adoption process

Consumers go through five stages in the process of adopting a new product:

 1. Awareness. The consumer becomes aware of the new product, but lacks information about it. 

2. Interest. The consumer seeks information about the new product. 

3. Evaluation. The consumer considers whether trying the new product makes sense. 

4. Trial. The consumer tries the new product on a small scale to improve his or her estimate of its value.

 5. Adoption. The consumer decides to make full and regular use of the new product

Pricing to Capture Value: Pricing Environment

In order to capture more value, companies need to understand what their customers really  want  and  their willingness  to pay for it. One way customers reveal their willingness to  pay  is through  self- segmenting, i.e. they themselves choose the high- or the low-price offer.

Consumer Psychology & Pricing

Psychological pricing A pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product

Price says something about the product. For example, many consumers use price to judge quality, A $100 bottle of perfume may contain only $3 worth of scent, but some people are willing to pay the $100 because this price indicates something special. In using psychological pricing, sellers consider the psychology of prices and not simply the economics. 

For example, one study of the relationship between price and quality perception of ears found that consumers perceive higher-priced cars as having higher quality.  When consumers can judge the quality of. a product by examining it or by calling on past experience with it, they use price less to judge quality. When consumers cannot judge quality because they lack the information or skill, price becomes an important quality signal

Another aspect of psychological pricing is reference prices - prices that buyers cam' in their minds and refer to when looking at a given product. The reference price might lie formed by noting current prices, remembering past prices or assessing the buying situation. Sellers can influence or use these consumers' reference prices when setting price.

 For example, a company could display its product next to more expensive ones in order to imply that it belongs in the same class. Department stores often sell women's clothing in separate departments differentiated by price: clothing found in the more expensive department is assumed to be of better quality. Companies also can influence consumers' reference prices by stating high manufacturer's suggested prices, by indicating that the product was originally priced much higher or by pointing to a competitor's higher price. Even small differences in price can suggest product differences. 

Consider a stereo priced at £400 compared to one priced at £399.95. The actual price difference is only 5p, but the psychological difference can be much greater. For example, some consumers will see the £399.95 as a price in the £300 range rather than the £400 range. Whereas the £399.95 is more likely to be seen as a bargain price, the £400 price suggests more quality. 

Complicated numbers, such as £347.41, also look less appealing than rounded ones, such as £350. Some psychologists argue that each digit has symbolic and visual qualities that should be considered in pricing. Thus, 8 is round and even and creates a soothing effect, whereas 7 is angular and creates a jarring effect

PRICING STRATEGIES/METHODS: 

By pricing method, or strategy, we mean the route taken by the firm in fixing the price.  There are several methods of pricing. The different methods of pricing can be grouped into a few broad categories as follows: Broad Categories of Pricing Methods: 

1.  Cost based Pricing 
2.  Demand Based pricing 
3.  Competition oriented pricing 
4.  Value pricing 
5. Product line oriented pricing 
6.  Tender pricing 
7.  Affordable based pricing 
8.  Differentiated pricing 
9. Psychological pricing
10. Pricing in stages of life-cycle of product

1.Cost-Based Pricing 

Under the cost-based category, the following approaches are the commonly used ones. 

a. Mark-up pricing/Cost plus pricing -a. Mark-up Pricing:Mark-up pricing refers to the pricing method in which the selling price of the product is fixed by adding a margin to its cost price. 

b. Absorption cost pricing (Full cost pricing)-The method uses standard costing techniques and works out the variable and fixed costs involved in manufacturing, selling and administering the product.

c. Target rate of return pricing - Target rate of return pricing is similar to absorption cost pricing. The rate of return pricing uses a rational approach to arrive at the mark-up. It is arrived at in such a way that the return on investment criteria of the firm is met in the process.

d. Marginal cost pricing Marginal cost pricing aims at maximizing the contribution towards fixed costs. Marginal costs include all the direct variable costs of the product.

2.Demand/Market-Based Pricing: 

The basic idea in all the demand-based methods is that sales and profits can be independent of costs but are dependent on the demand and hence pricing has to relate to demand.The following methods belong to the category of demand/market-based pricing:

a. Charging what the traffic can bear pricing 

b. Skimming pricing 

c. Penetration pricing 

 a.As per "what the traffic can bear" pricing, the seller takes the maximum price that the customers are willing to pay for the product under the given circumstances.  This method brings high profits in the short-term. But in the long run, what the traffic can bear‘ is not a safe concept. 

 b. Skimming Pricing: As the word skimming indicates, this method literally skims the market in the first instance through high price and subsequently settles down for a lower price. In other words, it aims at high price and high profits in the early stage of marketing the product. It profitably taps the opportunity for selling at high prices to those segments of the market which do not bother much about the price

c. Penetration Pricing: Penetration pricing seeks to achieve greater market penetration through relatively low prices. When the new product is capable of bringing in large volume of sales but is not a luxury item and there is no affluent/price insensitive segment backing it, the firm can choose the penetration pricing and make large size sales at a reasonable price before competitors enter the market with a similar product

3. Competition-Oriented Pricing

The methods in this category rest on the principle of competitive parity in the matter or pricing. Competition-based pricing or competitive parity, however, does not necessarily mean matching competition in price. 

Three policy options are available to the firm under this pricing method: 

a. Premium pricing 

b. Discount pricing

c. Parity pricing/Going rate pricing. 

For all of them, a competitor‘s price serves as the reference point. Premium pricing means that pricing is above the level adopted by the competitors. Discount pricing means below such level and parity pricing means matching competitor‘s pricing. Where supply is more than adequate to meet demand and the market remains competitive in a stable manner; where the channel and consumers are well aware of their choices, parity pricing can be the answer. 

4. Pricing to Value 

Value pricing,  is a modern, innovative and distinctive method of pricing.

a. Relationship between Price and Value: The crux is that price represents the exchange value of a product. In fact, in the nature of things, price revolves totally around value. Of course, price is related to the generic ability of the product to satisfy a need. Value is the worth the consumer attaches to it. It represents the quantum of money which he is willing to part with for owning the product. 

b. Essence of Value Pricing: Value pricing rests on the premise that the purpose of pricing is not to recover costs but to capture the value of the product perceived by the customer. The chief merit of value pricing is the recognition that the customer is interested only in the value or worth of the product and not in its costs. Value pricing will win customer loyalty to the marketer. And as long as the marketer is able to deliver value, in excess of his costs, his profits are also ensured. 

5. Product Line Pricing 

When a firm markets a variety of products grouped into suitable product lines, a special possibility in pricing arises. As the products in a given product line are related to each other, sale of one influences that of the others. They also have interrelated costs of manufacturing and distribution. In such a situation, the firm need not necessarily fix optimal price for each product, independent of other products in the line. It can fix the prices of the different product in such a manner that the product line as a whole is priced optimally resulting in optimal sales of all the products put together and optimum total profits from the line. 

6. Tender Pricing 

Business firms are often required to fix the prices of their products on a tender basis. Tender pricing  is more applicable to industrial products and products/services purchased/contracted by institutional customers. Such customers usually go by competitive bidding through sealed tenders/quotations. They seek the best (the lowest possible) price consistent with the minimum quality specifications.  

7 .Affordability Based Pricing 

The affordability based pricing method is relevant in respect of essential commodities which meet the basic needs of all sections of people. The idea here is to set prices in such a way that all sections of the population are in a position to buy and consume the products to the required extent.The price is set independent of the cost involved. 

8. Differentiated Pricing 

Some firms charge different prices for the same product in different zones/areas of a market. Sometimes, the differentiation in pricing is made on the basis of customer class rather than marketing territory. Sometimes the differentiation is on the basis of volume of purchase which is the most commonly used method in this category. 

9. Psychological Pricing 

Marketers often try to get around consumers‘ psychological barrier in respect of price through psychological pricing. For example, they put on a price tag of Rs. 295 instead of Rs. 300 or a tag of Rs. 9.990 instead of Rs. 10,000. While 99 is in two-digit territory, 100 is in the three digit territory. The consumer is comfortable with the thought that he has stayed within his preferred price band.

Research indicates that consumers do not consider a price too high when it varies within the band that they are looking for but they react adversely the moment it crosses the band. Any price that suggests a lower price band seems to confer a benefit on the seller as it plays on the psychology of the buyer.

Another point, though psychological again, is that it gives good feeling to the consumers if they received back some change after a purchase. The strategy makes the product seem more affordable.

10. Pricing in different stages of Life-cycle of a product:

A product has six stages of its life cycle viz. (i) Introduction, (ii) Growth, (iii) Maturity, Saturation, (v) Decline (vi) Obsolescence. Different pricing policies are adopted at different stages of a product‘s life cycle. These policies can be explained as:

 a. Pricing at introduction stage: At this stage, a new product is introduced into the market and intensive advertising campaign is launched to make the public familiar with the product. At this stage of product life cycle, either of the two strategies may be adapted: Skimming the cream icing and low penetration price strategy. Under first strategy, a very high price is fixed for the products and under penetration pricing, low price is fixed for the product depending upon the market conditions.

b. Pricing under growth: At this stage of product life cycle, the demand and sales volume of the product go up. The customer prefers the product to other products available in the market.  The producer in determining the price at this stage must consider the pricing policy of the competitors. 

c. Pricing under the stage of maturity: At this stage, the sales of the product continue to increase but at a lower rate. It is because at this stage, new competitors enter the market with superior quality product. The customers shift their brand loyalty to other new and superior products. At this stage, low price must be determined to check the customers shifting to new brand. 

d. Pricing under the stage of saturation: Under this product life- cycle, the total sales volume becomes stagnant. At first, price of the product should be kept lower  or reduced to a great extent if possible. In addition to it, the efforts must be made to change the physical and chemical attributes of the product so that it may look better. 

e. Pricing under decline: In the declining stage, the sale of the product is continuously declining in spite of the best selling effort. The hope of future sale becomes almost negligible. At this stage the producer must use break-even pricing. Policy of price-differentiation may also be adopted at this stage. 

f. Policy under the Stage of Obsolescence: At this stage, demand and sales of the product are reduced to a minimum low and possibilities of future sales are also bleak.  At this stage of life cycle, it is better to discontinue the product in order to avoid losses and use the resources to other profitable products.

Price Adaptations

 Price adaptation is the ability of a business to change its pricing models to suit different geographic areas, consumer demands and prevailing incomes.

Marketing plays a significant role in price adaptation because pricing strategy is one of the four main components in determining product positioning, which is is how a company chooses to present products to consumers and generate interest

Price Changes

 After developing their price structures and strategies, companies often face situations in which they must initiate price changes or respond to price changes by competitors.

 Initiating Price Changes

 In some cases, the company may find it desirable to initiate either a price cut or a price increase. In both cases, it must anticipate possible buyer and competitor reactions.

 • Initiating Price Cuts 

Several situations may lead a firm to consider cutting its price. One such circumstance is excess capacity. In this case, the firm needs more business and cannot get it through increased sales effort, product improvement or other measures. It  may drop its follow-the-leader pricing - charging about the same price as its leading competitor - and aggressively cut prices to boost sales. Another situation leading to price changes is falling market share in the face of strong price competition. 

A company may also cut prices in a drive to dominate the market through lower costs. Either the company starts with lower costs than its competitors or it cuts prices in the hope of gaining market share that will further cut costs through larger volume. 

• Initiating Price Increases 

In contrast, many companies have had to raise prices in recent years. They do this knowing that the price increases may be resented by customers, dealers and even their own sales force. Yet a successful price increase can greatly increase profits.  A considerable factor in price increases is cost inflation. Rising costs squeeze profit margins and lead companies to regular rounds of price increases. Companies often raise their prices by more than the cost increase in anticipation of further inflation. 

Another factor leading to price increases is over demand: when a company cannot supply all its customers' needs, it can raise its prices, ration products to customers or both. Companies can increase their prices in a number of ways to keep up with rising costs. Prices can be raised almost invisibly by dropping discounts and adding higher-priced units to the line. Or prices can be pushed up openly. In passing price increases on to customers, the company should avoid the image of price gouging. 

The price increases should be supported with a company communication programme telling customers why prices are being increased. The company sales force should help customers find ways to economize. Where possible, the company should consider ways to meet higher costs or demand without raising prices. 

Responding to Competitors’ Price Changes

Responding to Price Changes - how a firm should respond to a price change by a competitor. The firm needs to consider several questions: Why did the competitor change the price? Was it to make more market share, to use excess capacity, to meet changing cost conditions or to lead an industry-wide price change? Is the price change temporary or permanent? What will happen to the company's market share and profits if it does not respond? Are other companies going to respond What are the competitor's and other firms' responses to each possible reaction likely to be? Besides these issues, the company must make a broader analysis. It has to consider its own product's stage in the life cycle, its importance in the company's product mix, the intentions and resources of the competitor and the possible consumer reactions to price changes. 

There are many ways that a company might assess and respond to a competitor's price cut. Once the company has determined that the competitor has out its price and that this price reduction is likely to harm company sales and profits, it might simply decide to hold its current price and profit margin. 

The company might believe that it will not lose too much market share or that it would lose too much profit if it reduced its own price. It might decide that it should wait and respond when it has more information on the effects of the competitor's price change. For now, it might be willing to hold on to good customers, while giving up the poorer ones to the competitor. The argument against this holding strategy, however, is that the competitor may get stronger and more confident as its sales increase and the company might wait too long to act. 

If the company decides that effective action can and should be taken, it might make any of the four responses:

1. Reduce price. The leader might drop its price to the competitor's price. It may decide that the market is price sensitive and that it would lose too much market share to the lower-priced competitor. Or it might worry that recapturing lost market share later would be too hard. Cutting price will reduce the company's profits in the short run. Some companies might also reduce their product quality, services and marketing communications to retain profit margins, but this ultimately will hurt long-run market share. The company should try to maintain its quality ;is it cuts prices. 

2. Raise perceived quality. The company might maintain its price but strengthen the perceived value of its offer. It could improve its communications, stressing the relative quality of its product over that of the lower-price competitor. The firm may find it cheaper to maintain price and spend money to improve its perceived quality than to out price and operate at a lower margin. 

3.Improve quality and increase price-the company might increase quality and raise its price moving its brand into a higher price position.The higher quality justifies the higher price which in turn preserves the company's higher margins.or the company can hold price on the current product and introduce a new brand at a higher price position.

4. Launch low-price 'fighting brand'. One of the best responses is to add lower-price items to the line or to create a separate lower-price brand. This is necessary if the particular market segment being lost is price sensitive and will not respond to arguments of higher quality. 

Principles of marketing Unit 1 Introduction to marketing

Principles of marketing Unit 2 Consumer Behaviour and Market Segmentation

Unit 4 Marketing channels and promotional strategy New

First semester English Chapter 1 The Last Leaf

First semester English Chapter 2 All creatures great and small

First semester English Chapter 3 The Heart of a Tree

First semester English Chapter 4 Daughter

First semester English Chapter 5 The Ploughman

First semester English Chapter 6 My Teacher

First semester  English Chapter 8 A conversation with a reader

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