b) Pricing strategy.i. Pricing Objective Profit-oriented In a sense, every price is profit-oriented because even if you set the prices different with other objective in mind, you still have to get the profit to stay in business.
However, price of profit-oriented will be the first priority in making profit when we think about the ideal price to be set. Strategy of profit-oriented pricing is searching for the exact spot that can allows you to charge as much as possible for the offer that you set without charging so much that you alienate to potential customers and lose money through missed sales. The aim of determining the type of pricing is to maximize the profitability per unit compare to the cost of goods sold and the others operational cost. ii. Price StrategiesPrice Penetration Price penetration strategy will be sets relatively lower price to a new service or product for reaching the mass market in the introduction stage of a product’s life cycle. Even though many of new companies are using this kind of strategy to draw competitors attention away, pricing penetration does tend to result in initial loss of income for the business.
Other than that, factor of cost also can hinder potential of new entrants into the markets. iii. Pricing tacticsCharm Pricing Charm pricing means the price of the service just a few cent lower so that the first number of the price will looks cheaper. For example, if you’re using charm pricing tactics, you would sell your product or service for Rm399.99 instead of Rm400 because Rm399.
99 seems like it less. Traveloka is using charm pricing tactics. As you can see at the website of Traveloka, the price will be shown as Rm 471.
99 instead of Rm 472 because it will looks more cheaper.C (iv) Sales promotion- Major Tools Discounts and Coupons These are offered in Traveloka’s website and it’s application that can be download from App Store or Google Play Store. You can offer discounts and coupons via email to your email list or as a thank you when people download the apps or visits the website.(v) Personal Selling – interpersonal interactions Personal selling is a personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
Personal selling involves direct spoken communication between sellers and potential customers. Sales people get immediate feedbacks from customers and can adapt the marketing mix on the spot to meet customer needs better. A down side is that a sales force can be very expensive to build, support, and maintain. d) Place Strategy (Channel Structure).
i. Type of Marketing Channel : Direct Marketing Direct marketing is an interactive system of marketing, which uses one or more advertising media to affect a measureable response or transaction at any location. Traveloka is using direct channel that establish the relationship with customer through the technique of personal selling and e-commerce. This type of marketing channel brings benefits to both buyer and also the seller. This direct marketing is easy to use and more privacy for buyers.
Because of the benefits that both side receive, direct marketing has become the fastest growing form of marketing. b) Porter Five ForcesDescription :Bargaining power of customers ( Low )The bargaining power of customers is low because customers are not affected with the price that Traveloka offered. This is because Traveloka’s price is really affordable and reasonable. Threat of substitutes ( Moderate )We have been observe the price of our flight ticket purchasing and hotel booking, the different between our price and the original price are not to far.
So, that is not much to worry about.Extent of rivalry between competitors ( High ) Travel agency is a business that really competitive because this type of business can grown fast in the internet. That’s why Traveloka need to keep an eye on the others competitors.Threats of new entrants ( High ) Techonology nowdays are growing advanced and modern. There will be many new entrants that will appear with different innovation which can be better than Traveloka.
Power of Suppliers ( High )Traveloka is really strong in the power of suppliers because Traveloka have many company that offering to cooperate with them. https://smallbusiness.chron.com/four-types-pricing-objectives-33873.htmlhttps://www.linkedin.com/pulse/4-pricing-tactics-boost-revenues-without-increasing-price-stahmerhttps://thrivehive.com/sales-promotion-examples/ https://blog.udemy.com/list-of-interpersonal-skills/https://simplicable.com/new/marketing-channel