Marketing

Definition: The Encirclement Attack is a war strategy adopted by the challenger firm intended to attack the competitor on all the major fronts. Under this strategy, the challenging firm considers both the strengths and weaknesses of the opponent and then launch the attack simultaneously. It is assumed that only those firms that are 10 times stronger or powerful than the … [Read more...] about Encirclement Attack

Definition: The Flank attack is the marketing strategy adopted by the challenger firm and is intended to attack the weak points or blind spots of the competitor, especially a leader. A flank attack strategy is based on the assumption, that a large firm, may have several product lines and a wide range of services, but may not be necessarily a leader in all the categories. … [Read more...] about Flank Attack

Definition: The Frontal Attack is the marketing strategy adopted by the challenger firm and is intended to have a head on attack on the competitor by matching him in all the aspects Viz, product, price, place, promotion. It is assumed that in order to have an effective frontal attack the challenger must have three times more Fire Power than the opponent. Now the question … [Read more...] about Frontal Attack

Definition: The Promotional Pricing is a sales promotion technique, wherein the firm reduces the price of a product drastically, but for a short period. Companies adopt several promotional pricing schemes, some of them are listed below: Special-Event Pricing: Companies offer discounts and rebates on festivals, during the off-seasons with the intention to pull as … [Read more...] about Promotional Pricing

Definition: The Going-Rate Pricing is a method adopted by the firms wherein the product is priced as per the rates prevailing in the market especially on par with the competitors. Basically, the company sets a price of its products and services in line with the competitor’s prices, and may sometimes charge more or less depending on the value, product offers. This type of … [Read more...] about Going-Rate Pricing

Definition: In Perceived-Value Pricing method, a firm sets the price of a product by considering what product image a customer carries in his mind and how much he is willing to pay for it. In other words, pricing a product on the basis of what the customer is ready to pay for it, is called as a Perceived-value pricing. The perceived value is made up of several elements such … [Read more...] about Perceived-Value Pricing

Definition: The Target-Return Pricing is a method wherein the firm determines the price on the basis of a target rate of return on the investment i.e. what the firm expects from the investments made in the venture. Here, the firm calculates the amount invested in the business activities and then determine the return they expect from these assuming a particular quantity of … [Read more...] about Target-Return Pricing

Definition: The Mark-up pricing is the method of adding a certain percentage of a markup to the cost of the product to determine the selling price. In order to apply the mark-up pricing, firstly, the companies must determine the cost of a product and decide on the amount of profit to be earned over and above it and then add that much markup in the cost. Let's … [Read more...] about Mark-up Pricing

Definition: The Differential Pricing is a method of charging different prices for the same type of a product, and for the same number of quantities from different customers based on the product form, payment terms, time of delivery, customer segment, etc. The companies adopt the differential pricing method with an objective to maximize the profit of an organization. This … [Read more...] about Differential Pricing

Definition: The Market Challenger Strategies are the marketing strategies adopted by the firms, either occupying the third or runners-up position in the market, to attack the leader or the immediate competitor with the intention to capture a greater market share and earn huge revenues. Generally, the market challengers are those firms, which have a good reputation in the … [Read more...] about Market Challenger Strategies