The Discount And Allowance Pricing Marketing Essay

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There is Seven Ps formula to evaluate Sony Vaio S Series 13 SVS13118GGB product when the market strategy have developed. The Seven Ps formula can be categorized as product, price, place, promotion, people, process as well as physical evidence. Seven Ps is to ensure that the product is having a great result and demand in today's marketplace due to the fast changing product markets.

Sony Vaio S Series 13 SVS13118GGB is designed for mobility because the design, functions, performance, and usability are perfect balanced mobile personal computer. Because of it is light and thin as well as it is highly mobile in a 13.3 inches size, therefore, it is convenient for taking around every day. Other than that, Sony Vaio S Series 13 SVS13118GGB has long battery life which can let the customer go further and get more done.


The objective of this report is to analyze 7Ps of marketing of Sony Vaio S Series 13 SVS13118GGB that gather to satisfy a target group excellent than the competitors. This action is to achieve the company's long term objective as well as to gain competitive advantage.

In an addition, to make sure that Sony Vaio S Series 13 SVS13118GGB has all the bases covered, 7Ps analysis is not a disposable practice. On the contrary, 7Ps analysis is a continous process of reevaluation to ensure that Sony's product Sony Vaio S Series 13 SVS13118GGB is still connecting with the target audience in order to attract the customers more likely to purchase the product.

Sony Vaio S Series 13 SVS13118GGB is one of the products which produce by Sony and this product categorized in VAIO notebook and computer. Sony is a global manufacturer of audio, video, communications and information technology products for consumer and professional markets. Sony is specially positioned as one of the world's leading digital entertainment brands, offering an outstanding portfolio of exciting multimedia content with Sony's music, pictures, game as well as online businesses.

The features that Sony Vaio S Series 13 SVS13118GGB currently using has provides a smart performance for the toughest tasks, greater cache size and also a higher frequencies by Intel Core i7 Processor. Besides that, Sony Vaio S Series 13 SVS13118GGB has also features Intel Turbo Boost Technology and Intel Hyper-Threading Technology for a smart personal computer experience.

Furthermore, Sony Vaio S Series 13 SVS13118GGB has an awesome graphics by having NVIDIA GeForce GT 640M LE GPU which helps the notebook's performance up to 4x. This feature helps Sony Vaio S Series 13 SVS13118GGB get an outstanding and superb performance on gaming, and multimedia.


Product refers to goods, services, ideas which consist of a bunch of tangible and intangible characteristics as well as information that able to satisfy consumers.

Sony Vaio S Series 13 SVS13118GGB is a laptop which categorized as durable goods as well as shopping goods. This is because of the specific product which currently analyzing can be use for a long period at least one or two years. Yet, this product is also categorized as shopping goods that normally people would not purchase the product often like convenience good. Due to the cost of this product is not low as convenience goods, consumers tend to do some research first before the consumers acquire the product.

This product can be differentiating as a perfectly portable laptop because of the thinness and the lightness of it. Other than that, Sony Vaio S Series 13 SVS13118GGB is also comes with three special hardware buttons such as VAIO, ASSIST and WEB which is convenient and easy to get where the individual want to go with a simple touch of a button.

Next, there is five products levels analysis which is core benefits, basic product, expected product, augmented product and potential product. Core benefits are the thinness and lightness of the product. Secondly, basic product is the consumers might need the latest software. Thirdly, augmented product is this product has provided one year warranty. Lastly, potential product is the product should have longer period of warranty and up-to-date software.


Price refers to an amount of money or the cost that charge on product or service.

There are two types of general pricing strategy which is value-based pricing and cost-based pricing. While Sony Vaio S Series 13 SVS13118GGB is using value-based pricing strategy. This product was designed before the price set up based on the product cost.

Besides general pricing strategy, there is product mix pricing strategy. There are skim pricing and penetration pricing. From the research of product Sony Vaio S Series 13 SVS13118GGB, this product is using skim pricing strategy. This product has set a high price just to take advantage of sales which will occur before other competitors enter the market. Because of this product is to target the professional users.

Furthermore, there are seven types of price-adjustment strategies. Which are discount and allowance pricing, segment pricing, psychological pricing, promotional pricing, value pricing, geographical pricing and international pricing. The price-adjustment strategies that Sony Company using are:

Discount and allowance pricing

There are promotional allowances like giving discount to the Sony dealers for participating in advertising and sales-support programs.

Promotional pricing

Sony Company will set a lower price which is a promotional price for Sony Vaio S Series 13 SVS13118GGB during PC Fair.

International pricing

Sony Vaio S Series 13 SVS13118GGB has different price in Malaysia compare to Australia. Malaysia selling RM 3,999 while Australia selling $1485.75 (RM 4716.35).


The place when customers buy the product, the place must be appropriate and convenient for the customers. The product must be at the right place and the right time as well as in the right quantity, while keeping storage, inventory and distribution cost to an acceptable level.

Sony has an online presence in some formats, for instance provides information about the products as well as the prices. Other than that, this website has also information on corporate applications for its offerings.

Sony Vaio S Series 13 SVS13118GGB is selling by retailers. This is because of the business sales are come directly from retailing. It is a full level of service.


Promotion is the way that the company let the consumers know about what the product is and what the company currently offering. Promotion includes activities like branding, advertising, PR, corporate identity, sales management, special offers and exhibition. Promotion is to gain attention and deliver the message to the customers.

There are two types of promotional strategies such as pull strategy and push strategy. Sony Vaio S Series 13 SVS13118GGB is using both push and pull strategies. The sellers push to create customer demand and offering this product in the stores. While pull strategy, is pull customers towards this product through advertising and promotion deals.

Integrated marketing communications elements are sales promotion, advertising, personal selling, public relations, direct marketing and word-of-mouth marketing.

Sales promotion

Vaio S Series 13 SVS13118GGB has a sales promotion at an event which is PC Fair. The product is selling at lower price by providing discount to the customer.

Personal selling

The seller use to convince the customers to acquire the product by a personalized approach. Other than that, the seller demonstrates the ways that Vaio S Series 13 SVS13118GGB will benefit the individual. Besides, customer is allowed as well as given the opportunity to ask questions.

Direct marketing

To obtain an immediate response and cultivate lasting customer relationships, Sony marketing department will send an email to targeted individual consumers about the latest update or the upcoming model that they going to sell.

Physical Evidence

Physical evidence is the material part of a service. This is also referring to the way that the product, service, and everything about the company, appears from the outside. Size, shape, color, material, UPC bar code, as well as the label of the packing need to make decision. Other than that, physical evidence can be referring to the people within the company and the way they dress and act as well.

There are few physical elements of physical evidence such as below:


There is an official website of Sony Company which allow the customers to search for information of the products that the customer looking for. Therefore, to know more information about Vaio S Series 13 SVS13118GGB, customer can actually search for the official website of Sony Company.


Every product has their own brochures and same come to Vaio S Series 13 SVS13118GGB. The brochure is for the customers gain knowledge about Vaio S Series 13 SVS13118GGB. Let the customers know the features of the product. For example:



Processes refer to providing a service and the behaviors of the people who deliver the product are crucial to customer satisfaction. Matter like the waiting times, the information that deliver to the customers and the helpfulness and the friendliness of staffs are vital to keep the customers happy and satisfy.

The process flow of Sony from producing, selling, delivering and customer service is like seeking to instill corporate a social responsibility policies from its supple chain. For instance, Sony has established a program which known as Green Partner Environmental Quality Approval Program for the Sony suppliers. Thus, Sony gets to maintain a common global quality standard for parts by acquiring electronic only from the suppliers who have passed as audit as well as been certified as Green Partners.

Customer's touch points after sales service is the desire to make the hardware and interfaces which are easy to use was a catalyst behind recent reorganization of electronic into "Home" and "Personal" categories. The company has restated that the commitment to make the "Home" category more user friendly.

In an addition, to improve the responsiveness and customer service, Sony has established a network of service which is especially for the needs of local customers. Hence, Sony Customer Services, Inc as well as the company has initiated special employee training to improve the ability of responding the customers' inquiries and requests as well.


People refers to all the people who directly or indirectly influence the perceive value of the product or service, including knowledge workers, employees and management.

Howard Stringer, Hiroshi Yoshio, Kazuo Hirai have the highest position in Sony Company. Howard Stringer is a Chairman, CEO and also a President of Sony while Hiroshi Yoshio is an Executive Deputy President of Consumer Products & Devices Group (NPSG). Lastly, Kazuo Hirai is an executive Vice President of Networked Products & Services Group. Meanwhile, Sony has employs 167,900 people worldwide. Sony has an ongoing talent in developing an initiative. A job rotation project with the individuals moving through a schedule of job assignments which designed to give Sony exposure to an assortment of businesses and regions are included in initiative.

Customer service which provided by the Sony outlet like call centre is to help the customers everything about Sony's products. Other than that, there are also some staffs that are lack of knowledge about the products.


As a conclusion, the analysis 7Ps formula of marketing is very useful to analyze a company or even a product just like Vaio S Series 13 SVS13118GGB. After we know the result of analysis, we will get to know the problems that the company currently facing. In order to provide a high satisfaction product and service to the customer, we have to cover up the problems as well as enhance the products and services.

There are two weaknesses of Vaio S Series 13 SVS13118GGB which is the price and also the Sony window that the product currently using.


Pricing- Vaio S Series 13 SVS13118GGB should lower the price so that other people can afford the product.