8 niche mkt and others.pptVIP

39 42 43 44 45 46 47 48 49 50 51 7 8 10 11 15 16 17 18 19 20 21 22 23 25 26 27 27 30 31 32 34 35 36 37 Price Skimming [price from high to low] Discount Loss-leader [at or below cost] Psychological Perceived value Cost-plus Return on investment Competitive Penetration Price Cost - plus IF...... 20% gross = profit: Price = unit cost = $1.00 = $1.25 1- percentage 1-0.2 Competitive Following the price set by another producer Skimming High Price to start, then price drops Penetration Pricing Selling price is less than production cost in an attempt to attract new customers. Price Psychological $2.99 vs. $3.00 per pound Loss Leader Discount Pricing Discount prices for large volume sales. Price Promotion “Did you know that every unsatisfied customer transaction wipes out the total profits on 5 to 7 satisfied customers?” Promotion Depends upon: Scale of operation Resources available Availability of product Location of farm Promotion Must be targeted to your audience. Income level Upper Middle Marketing location Restaurants Farmer’s markets Promotion Aimed at consumer Clear Concise Focused Promotion Wholesale: Is the buyer’s responsibility Promotion Direct retail: Is the producer’s responsibility Promotion Generic Personal Promotion - Generic Catfish Cookbook produced by The Catfish Institute Most Effective Promotional Methods Newspapers Sampling In-store Demonstrations In-store Ads Coupons Radio / Recipe cards (tie) TV / Mailers (tie) Promotion - Newspapers Farm-raised Clams. Raised free of contaminants, highly nutritious, priced to sale. Saturday 8-12 a.m. State Road 38 and 900 East in Danville. Promotion –In Store Demos Provides high visibility of product. Requires large quantities of product. POP Materials POP Materials Remind Inform Persuade Merchandise Seafood Month Should Last All Year 2005-06 Place Place Depends on: Location of farm Method of promotion Species Ability to pro