goods. Price means a value that will purchase a finite quantity, weight, or other measure of a good or service
(Santiwong, 1997). Pricing depends on the firm’s average cost and on the customer’s perceived value of the product
in comparison to his or her perceived value of competing products. Thus, a strategic decision on pricing should
place a consideration on 1) customers’ higher level of acceptance of product value rather than the price itself; 2)
costs and other expenses; 3) market competition; and 4) other factors. Place or channel of distribution composes the
systematic activities of product launching and distributing from sources of production to sources of consumption.
Place consists of 2 parts: 1) channel of distribution, meaning the path through which goods and services travel from
the vendor to the consumer or payments for those products to travel from the consumer to the vendor, thus producer,
intermediaries and consumers all play in this process; and 2) market logistics, meaning activities involved in moving
goods from the vendor to the consumer, thus this process concerns transportation, storage, warehousing and
inventory management. Lastly, promotion is defined as an act of using several different types of communication in
exchanging information between sellers and buyers in order to create positive attitudes and buying behavior, to
support marketing goals. Communication can be done through personal and non- personal selling, and integrated
marketing communication. Advertising, personal selling, sales promotion, publicity and public relations and direct
marketing including online marketing are the 5 aspects of the promotional mix.
goods. Price means a value that will purchase a finite quantity, weight, or other measure of a good or service(Santiwong, 1997). Pricing depends on the firm’s average cost and on the customer’s perceived value of the productin comparison to his or her perceived value of competing products. Thus, a strategic decision on pricing shouldplace a consideration on 1) customers’ higher level of acceptance of product value rather than the price itself; 2)costs and other expenses; 3) market competition; and 4) other factors. Place or channel of distribution composes thesystematic activities of product launching and distributing from sources of production to sources of consumption.Place consists of 2 parts: 1) channel of distribution, meaning the path through which goods and services travel fromthe vendor to the consumer or payments for those products to travel from the consumer to the vendor, thus producer,intermediaries and consumers all play in this process; and 2) market logistics, meaning activities involved in movinggoods from the vendor to the consumer, thus this process concerns transportation, storage, warehousing andinventory management. Lastly, promotion is defined as an act of using several different types of communication inexchanging information between sellers and buyers in order to create positive attitudes and buying behavior, tosupport marketing goals. Communication can be done through personal and non- personal selling, and integratedmarketing communication. Advertising, personal selling, sales promotion, publicity and public relations and directmarketing including online marketing are the 5 aspects of the promotional mix.
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