Pricing Strategies of Tusting | Report
Added on 2020-02-05
13 Pages3909 Words71 Views
Marketing
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MARKETING PRINCIPLES ANDPRACTICE
TABLE OF CONTENTSINTRODUCTION ...............................................................................................3TASK 2 PRICING STRATEGIES...........................................................................3TASK 3 MARKETING COMMUNICATION TOOLS.................................................5TASK 6 SOCIAL MEDIA MARKETING IN THE NEWS............................................8CONCLUSION .................................................................................................11REFERENCES .................................................................................................12
INTRODUCTION Marketing principles and practices are related to those strategieswhich help to promote products in the market (Brush, Edelman andManolova, 2015). The report is based on the pricing strategies of Tustingwhich luxurious English leather trade for five generations and they are nowBritain's largest and most highly regarded luxury leather luggage and travelbags (About us, 2013). The report explains the pricing strategies which areadopted by them. Apart from this, different marketing communication toolshas been identified through which they can make communication with theaudience. More than this, a detailed analysis of the social media marketinghas been done to identify the role of social media in marking of the products.TASK 2 PRICING STRATEGIESPricing strategies for Tusting:As the company is operating in different countries that is the reasonthey uses different types of pricing strategies. This will help the organisationto get more profit from the market. Generally they uses the Premium pricingstrategies. According to this strategy the prices of the product are set abovethe market rate (Davidson, 2016). As they are the luxurious brand of UK so itwill be possible for them to get more profit in the market. Basically it is thepractice of keeping the prices high to encourage favorable perceptionsamong the buyers based solely on the price (Pricing Strategies, 2010). Thispractice is intended to exploit the tendency for buyers to assume that theexpensive items always enjoys an exceptional reputation. This strategy issometimes also called the skim pricing as it is an attempt to skim the creamof the market (Hoppner and Griffith, 2015). Tusting generally uses that tomaximize their profits in the market where there are no substitute of theproducts or having less value than the other products. Other than this, theluxurious products are having the psychological association with adoptingthe premium pricing. The implication of the marketing is done because high
profile people generally likes to buy the luxurious products that are havinghigh price tag (Meraj, Fernandes and Ross, 2016). Tusting sometimes also follows the cost plus pricing which is themethod of setting the prices of the products more than the actual cost.Through this, the organisation are quite capable of collecting much amountof money form the market to cover their cost. In this strategy Tustingincludes the direct cost, indirect cost, material cost and overhead cost of asingle ladies handbag and add a markup percentage to derive the prices ofthe products (Rana and Sharma, 2015). This will not only help them to covertheir cost but also it will help them to get profits in the market. Other thanthis, it will help sometimes also creates the situation of monopolycompetition. Apart from that, through cost plus pricing Tusting is also able toget more profits on the single design of the product (Salvo, 2015). They caalso use it for their other product to gain profit in market. Generally themarkup is not so high so that it will be affordable by people to purchase it. Inaddition to this, buyers also thinks that cost plus pricing is the affordableapproach to purchase the product easily. It will offer the competitive stabilityto the company if all the firms adopt cost plus pricing strategies. It will begenerally used by the companies when they are having the much amount ofcost on the products (Sinapuelas, Wang and Bohlmann, 2015). As it will beeasy for them to afford the cost of the product. Other than this, it will be alsodone for the intention of covering their cost on the products. As it is not socommon technique in market to finalize the prices of the products but still itis much effective technique to cover the entire cost of the products withoutgiving too much prices of the products. It is also said as the economic theoryas it is possible for the company and customer both to afford the prices ofproducts. It will also make the people attracted towards the quality of theproducts which leads to organisational profits of the company (Chrysochou,2010). As it is not involved in charging too much prices of the products it will
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