Page 234 - CITS - Fashion Design Technology - Trade Theory

FASHION DESIGN & TECHNOLOGY - CITS

3 Design
4 Testing

5 Adoption
Pricing Policy
Price of a product or service often plays a significant role in that product’s or service’s success. Through systematic
pricing policies and strategies, companies can reap greater profits and increase or defend their market shares.
Setting prices is one of the principal tasks of marketing and finance managers.
Types of Pricing

1 Value-Based Pricing
2 Demand-Based Pricing
3 Competition Based Pricing
Sales forecasting
A sales forecast is an estimate of expected sales revenue within a specific time frame, such as quarterly monthly,
or yearly. It expresses how much a company plans to sell. Forecasters analyze economic conditions, consumer
trends, past purchases, and competitors to make accurate predictions. This helps the business plan, allocate
resources, and identify opportunities and sales forecasting process.
Three main sales forecasting methods
1 Use of historical data to forecast future results- Looking at historical data is perhaps the most common as well
as most straightforward approach.
2 Funnel-based forecasting- For many companies, the current state of the sales funnel is viewed as the most
accurate predictor of likely sales outcomes.

3 Forecasting based on multiple variables- Based on other various factors other than the above two methods.
Sales Promotion and Salesman Ship
Sales promotion: A sales promotion is a marketing strategy in which a business uses a temporary campaign or
offer to increase interest or demand in its product or service.

Types of sales promotion
1 Competitions and challenges
2 Product bundles
3 Flash sales

4 Free trials
5 Free shipping
6 Free products
7 Early bird or first purchaser specials
8 BOGO Sales (BOGO - “buy one, get one free” promotions)

9 Coupons and vouchers
10 Subscriptions
Benefits of sales promotion
• Creating new leads

• Introducing a new product
• Selling out overstock
• Rewarding current customers
• Increasing revenue

221

CITS : Apparel - Fashion Design & Technology -Lesson 33