The segment of consumer’s whose perception suggest that product price is congruent with product quality tends to generally supports marketers and producers desire to seek higher margins on their products – an easy win for supporters of “consumer perception marketing”. However, sustainability of this marketing strategy and niche may flounder during tough economic times. Challenging economic cycles force many consumers to stretch their limited monetary resources – including consumers who connect quality to price.
Marketing and pricing mix is typically a result of management’s selection process attributed to the costs of production, promotion, distribution, and ultimately price. Therefore, the element of product or brand selection must be presented to consumers in a manner that is superior to competitors or have brand quality and value that customers seek.
An important component of product promotion resides in the arena of promotional attributes that demonstrate the description, justification, and product placement; determined by the marketing mix. It is imperative to determine cost-effective distribution channels and the appropriate venues for product movement and adoption. Relevant issues associated with product distribution centers on market penetration, costs, and control requirements.
Product price is also dependent upon distribution channels, production costs, wholesale price, and retail price and should all be assessed and justified prior to final product price listing. Why? Because during tough economic times most consumers become price conscious and averse.
