The Role of Pricing Pricing Strategies:  Identity three types of pricing strategies. Select a good or service and compare the prices of two different companies associated with the goods or service. Why do different organizations have different pricing strategies for the same good or service? Respond to at least 3 of your classmates. Respond to Darlene McCurry post Approaches to the price setting is based on the three Cs: costs, customers, and competitors. Cost-based pricing relies on production and marketing related costs as key elements in determining product's initial or standard price. Customer-based pricing are prices devrived from buyers' perceptions of value rather than sellers cost. It includes price skimming and penetration pricing. Competition based pricing are made by organizations for the prices charged by competitors. A service that I choose would have to be internet service. Xfinity and AT&T are two of Atlanta's top internet providers. In 2008, AT&T ended their partnership with Google to embark on their internet service for customers. Xfinity which is a trade name of Comcast is the second-largest cable television and largest internet service company in the United States. AT&T offers internet service packages that range anywere from $30 - $75. Comcast offers internet service packages from $30 - $70. With Comcast being one of the leading internet service providers, they are able to offer lower prices that include cable services. AT&T offer internet services and only offer cable services in bigger packages.  Companies offer different pricing strategies for the same product to lure consumers to them. Companies such as Comcast often set lower pricing to attract and retain the customers they have. They not only offer internet but cable service (with all packages) as well which seems as a much better deal to individuals wereas AT&T offers television with certain packages. Companies look to other companies to stay in competition with. They base their pricing strategies on their services and what their competitors offer.  Finch, J. (2012). Managerial Marketing. San Diego, CA: Bridgepoint Education, Inc. Respond to Kerrick Smith post Cost - based pricing looks for the break even point or lowest price that it takes to cover both the variable and fixed cost associated with the production of a product. The amount over this price will be considered profit.  Customer – based pricing strategy takes into account a customer; the buyer’s perception value that they would receive based on the price placed on either a product or service. Competition –based pricing strategy is used by companies in a way to consider price changes made by their competitors as a way to determine whether to increase or decrease their prices. According to Finch (2012) “Alternatively, they may set a price higher than their closest competitors' prices as a means of positioning their product as a premium brand”. Dish Network and Direct T.V. are both satellite television cont.

1. The Role of Pricing
Pricing Strategies: Identity three types of pricing strategies.
Select a good or service and compare the prices of two different
companies associated with the goods or service. Why do
different organizations have different pricing strategies for the
same good or service? Respond to at least 3 of your classmates.
Respond to Darlene McCurry post
Approaches to the price setting is based on the three Cs: costs,
customers, and competitors. Cost-based pricing relies on
production and marketing related costs as key elements in
determining product's initial or standard price. Customer-based
pricing are prices devrived from buyers' perceptions of value
rather than sellers cost. It includes price skimming and
penetration pricing. Competition based pricing are made by
organizations for the prices charged by competitors.
A service that I choose would have to be internet service.
Xfinity and AT&T are two of Atlanta's top internet providers. In
2008, AT&T ended their partnership with Google to embark on
their internet service for customers. Xfinity which is a trade
name of Comcast is the second-largest cable television and
largest internet service company in the United States. AT&T
offers internet service packages that range anywere from $30 -
$75. Comcast offers internet service packages from $30 - $70.
With Comcast being one of the leading internet service
providers, they are able to offer lower prices that include cable
services. AT&T offer internet services and only offer cable
services in bigger packages.
Companies offer different pricing strategies for the same
product to lure consumers to them. Companies such as Comcast
often set lower pricing to attract and retain the customers they
have. They not only offer internet but cable service (with all
packages) as well which seems as a much better deal to
individuals wereas AT&T offers television with certain

2. packages. Companies look to other companies to stay in
competition with. They base their pricing strategies on their
services and what their competitors offer.
Finch, J. (2012). Managerial Marketing. San Diego, CA:
Bridgepoint Education, Inc.
Respond to Kerrick Smith post
Cost - based pricing looks for the break even point or lowest
price that it takes to cover both the variable and fixed cost
associated with the production of a product. The amount over
this price will be considered profit. Customer – based pricing
strategy takes into account a customer; the buyer’s perception
value that they would receive based on the price placed on
either a product or service. Competition –based pricing strategy
is used by companies in a way to consider price changes made
by their competitors as a way to determine whether to increase
or decrease their prices. According to Finch (2012)
“Alternatively, they may set a price higher than their closest
competitors' prices as a means of positioning their product as a
premium brand”.
Dish Network and Direct T.V. are both satellite television
content carriers. Dish Network has service packages that range
from 19.99 to 89.99 as long as you sign a contract for 24
months. Direct T.V. charges 24.99 to 92.99 for similar content
packages. I believe that Direct T.V. charges more for similar
service because the company sees itself as the market leader and
therefore their services should be considered premium. Direct
TV also has a deal with the NFL network which is used as a
marketing tool to draw in customers who enjoy watching
football. Also they both provide Internet service and have side
deals with third party service providers such as AT&T, Verizon,
and Century Link, that offer their services bundled together
with other services which each provides.
References
Finch, J. (2012). Managerial Marketing. San Diego, CA:
Bridgepoint Education, Inc.

3. Respond to Marcus Dillard post
Three Types of Pricing Strategies
A great deal of research and analysis must be completed in
order for an organization to determine a price point of a
product. In order to establish pricing a marketing leader must
assess product-related costs, competitors’ strategies, and
customer perceptions (Finch, 2012). Our text details three types
of pricing strategies:
· Cost-based pricing: pricing based on production and marketing
related costs which includes (1) mark-up pricing and (2)cost-
plus pricing.
· Customer-basedpricing: pricing based on the buyer’s
perception of value rather than the seller’s cost and therefore it
is often referred to as demand-driven or value-based pricing.
· Competition-based pricing: pricing that is set based on
competitor pricing and can be categorized as either (1) above-
competition pricing or (2) niche pricing.
Select a good or service and compare the prices of two different
companies associated with the goods or service. I have selected
Angel Soft and Charmin toilet tissue. Although both are the
same products you will note that Charmin generally sells at a
higher price point than Angel Soft. Charmin has the name and
years of distinction behind it but there are many people that
have moved over to Angel Soft due to the price point.
Why do different organizations have different pricing strategies
for the same good or service? I believe many organizations have
different pricing strategies because the history and brand name
allow the company to feel that they will maintain their true
customer base and the few that leave won’t impact the bottom
line. Also, I believe many companies feel that the product they
offer is premium they maintain a premium price. When a
company decides to price lower, I believe it is an attempt to
draw interest int heir products. Without the brand name, many
consumers won’t give them a try unless they appeal to
something that motivates consumers and that would be price.

4. Finch, J. (2012). Managerial marketing. Retrieved from
https://ashford.content.e
Discussion 2 Product Development Process
Do an internet search of the new product development process
of any product of your choice, and analyze the process for
developing the product. Review the reasons why new products
fail and make two specific recommendations to improve the
high failure rate of new products.
Respond to at least three of your classmates posts.
Respond to Anatalya Mikels post
Fast food companies are continuously introducing new food
products into their restaurants. The new product development
process includes idea generation, screening, concept
development and testing, business analysis, market testing, and
commercialization (Finch, 2012). One fast food company that
has a very in-depth product development process is Krystal fast
food chain. Krystal’s process is a seven step process in which
ideas are created using customers, franchisees, and
management. The team is collaborative and of utmost
importance is consumer insight throughout all steps of the
process (Kelso, 2013).
Two fast food ideas that both failed in the past include the
McDonald’s Arch Deluxe burger and Burger King’s Satisfries.
The Arch Deluxe burger was a gourmet, artisan version of a
McDonald’s burger. McDonald’s spent $150 million in
promoting this burger only to have it fail (James, 2016). Burger
King’s Satisfries were a lower fat and calorie option of Burger
King’s regular fries (Becker, 2018). Both of these products
proved to be unsuccessful because each of these companies
failed to take into account the target market’s opinion.
In the case of McDonald’s Arch Deluxe burger and Satisfries, it
seems an important question was not asked during the screening

5. process. As Finch states (2012), this question is “Does the idea
fit within the organization’s overall strategy?” (9.3, para.7). If
this question was asked during this process, they may not have
missed the fact that the majority of McDonald’s customers do
not go to McDonald’s because they are looking to eat a gourmet
burger and Burger King would have realized the majority of
their customers are not looking to eat healthier.
I can imagine both of these companies went through the
development and testing phases in their research and
development process and this part may have been successful,
but the focus groups may not have been the customers that were
frequenting the restaurants. While employees of the companies
and random focus groups may have found these two food items
appealing, the majority of fast-food eaters were most likely not
included. To improve the high-failure rate of new products, I
recommend that the organization’s overall strategy including
the identification of the target market is kept in mind when
bringing forth new ideas for products and that the correct
members of focus groups be chosen that also match the
organization’s overall strategy and target market.
References:
Becker, S. (2018). 15 worst product failures and flops from the
past 5 years. CheatSheet. Retrieved
fromhttps://www.cheatsheet.com/money-career/worst-product-
failures-flops.html/Links to an external site.
Finch, J. (2012). Managerial Marketing. Retrieved
from https://content.ashford.eduLinks to an external site.
James, G. (2016) The 21 worst product flops of all time. Inc.
Retrieved from https://www.inc.com/geoffrey-james/the-21-
worst-product-flops-of-all-time.htmlLinks to an external site.
Kelso, A. (2013). Menu, product development takes patience,
collaboration. FastCasual. Retrieved
from https://www.fastcasual.com/articles/menu-product-
development-takes-patience-collaboration/Links to an external
site.
Respond to Troy Watson post

6. Samsung electronics is one of the largest producers of
televisions and mobile phones. The reason Samsung has been
able to achieve the high success rate in electronics is having the
ability to create high quality products. This is why Samsung
created a product innovation team that helps deliver their New
Concept Development (NCD) process. The product innovation
team was created in 2006 and it provides the company more
market insight. There are four stages found within the NCD
process such as understand, ideate, concept development, and
concept finalization.
The first step in understanding what new product to push is
being able to understand the trends. This is accomplished by
conducting field research and data collection to understand the
user’s perspective. This process isn’t just applied to the
consumer but also used when studying competitors.
The second step is being able to generate new ideas. This
process is conducted by the thinkers and designers, who study
the data collected from step one. This process can be the most
time consuming as it requires brainstorming tens or hundreds of
ideas.
The third step in the NCD process is the development phase.
This is when the team takes all information gained from step
one and two and develops their business strategy. This phase
gives the company the ability to refine many ideas into one
defining concept. Then the concept is developed into a business
case.
The final step in the NCD process is concept finalization. The
product innovation team works directly with business units
during this stage. The team is able to finalize the product
concept that best meets the market and consumer requirements.
New products have a high failure rate because they fail to
understand the consumer’s needs. These is more common in
today’s society because it seems everyone wants their products
on the market now and never want to take time to research. This
is why I love Samsung’s NCD process because it focuses on
field research and data collection. This is one way to limit

7. product failure and should be the first step for every company.
Another reason why companies fail when pushing new products
is building the business plan. The company may have the best
product in the world but not understanding how to market it to
your audience with fair prices will cause the product to fail.
One way to understand how much your market audience will
pay and how to market it to them is conducting a test run. When
the test run is being conducted you build more data from that
and can send your product to the next stage of production with
less of a fear of failure.
Respond to Tenia Miller post
The product, I am choosing to highlight and expound on is the
Apple iPhone. This product has gone through several layers and
levels of improvement. The first 1st generation of the iPhone
was released in 2007 and had nine versions of the phone since.
The first part of the new development phase of creating the
phone started with recognizing the need for instant handheld
access to a computer, which i the first step, generating the idea.
Developing the right product, with the correct pricing and target
marketing was the essential portion in continuing to create new
versions of the same products. Each version changes to meet the
necessity of the targeted audience. The upgrades to the
headphones, camera, and speakers are improved to gain and
maintain the interest of the younger generation. The simplicity
of the apps and family features are used for parents and older
consumers alike. The Apple Company has master the art of the
new development s processes across each product they offer, to
include their most recent venture, Apple TV. The live television
and streaming service is second to none and allow consumers to
capture primary cable channels without cable pricing.
Often companies such as Microsoft and Samsung attempts to
compete with similar products such as the Zune vs. iPod. Both
products provide the same features, but the iPod can connect
and interface with other Apple products, was the Zune fail
short. Products regularly miss the mark because they do not

8. identify what makes a product unique and building on the
specifics to compete. It is often the underestimation that tanks a
product in the first five years.