Question: Suppose you are going to launch an online retail shop where you will sell sports related products (Jerseys, shoes etc). Explain the pricing and promotional strategy that you will implement for your online store.

Referance:

Price is the value that is put to a product or service and is the result of a complex set of calculations, research and understanding and risk taking ability. A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors.

Elements of Pricing Strategy: Price skimming, Penetration pricing, Competitive pricing, Premium pricing, Loss leader pricing, Psychological pricing, Value pricing

Apromotion strategyis an actionable plan to influence people about your business, generate more leads, and boost customer engagement. It visualizes how to perform your marketingstrategyand communication, who to target as your audience, and where and when to execute thepromotionplan.

Elements of Promotional Strategy: personal selling, advertising, sales promotion, direct marketing, and publicity.