Pricing And Distribution

Pricing and Distribution
Pricing is one of the most important elements of the marketing mix as it is the only mix, which generates a turnover for the organization; the
remaining 3p's are the variable cost for the organization. It costs to produce and design a product; it costs to distribute a product and costs to promote
it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship (Constantinides, 2006). Pricing a
product too high or too low could mean a loss of sales for the organization. Pricing should take into account the following factors:
Fixed and variable costs
Competition
Company objectives
Proposed positioning strategies
Target group and willingness to pay
An organization can adopt a ... Show more content on Helpwriting.net ...
Reliance Communications reduced the rates of outgoing calls. All incoming calls were free.
Value added services like voice mail, call waiting, call holding, call divert, call identification and call conferencing were charged at a premium by all
the other players in the market. Reliance Communications offered all these services free of charge. In addition all text messaging was offered free of
charge.
The pricing strategy for a new product should be developed so that the desired impact on the market is achieved while the emergence of competition is
discouraged. Two basic strategies that may be used in pricing a new service are skimming pricing and penetration pricing.
Skimming pricing is the strategy of establishing a high initial price for a service with a view to "skimming the cream off the market" at the upper end
of the demand curve. It is accompanied by heavy expenditure on promotion. A skimming strategy may be recommended when the nature of demand is
uncertain, when a company has expended large sums of money on research and development for a new service, when the competition is expected to
develop and market a similar service in the near future, or when the service is so innovative that the market is expected to mature very slowly. Under
these circumstances, a skimming strategy has several advantages. At the top of the demand curve,
... Get more on HelpWriting.net ...

Ansoff Matrix Essay
We will now analyze the corporate–level strategy of Patanjali using the Ansoff Product and Market Growth Matrix. There are four components of
Ansoff Matrix – market penetrations, market development, product development and diversification and we will discuss each of them in detail below.
a)Market Penetration: It focuses on expanding sales of the existing product in firms existing market. This can be achieved by a combination of pricing
strategy , sales promotion and marketing and the objective of the firm is to be the dominant player in that market by driving out the competitors and
increasing the loyal customer base. This would make it less risky and require less market research for the firm to expand as it can utilize its existing
resources ... Show more content on Helpwriting.net ...
This strategy requires the firm to develop products appealing to existing markets and the business will have to develop new competencies. This strategy
emphasis on research and development, market research on customer needs and innovative ideas. This usually happens if the firm has a huge customer
base and the market for existing product is reaching saturation and thus market penetration strategy could not be applied. Patanjali in its part focused
on quality, purity and affordability and the followers of Baba Ramdev formed its core set of customers. Patanjali started making amla (gooseberry)
juice which happened accidently. A group of farmers don't know what to do with excel gooseberries as the price was very low and there was not much
demand. At that Patanjali introduced this new drink – 'Amla Juice' to the market which was an instant hit. The introduction of new product was little
riskier as they didn't knew how the product would be accepted by the customers, but after the drink became hit, they introduced various varieties of
juices likes Aloe Vera Juice, Hing digestive golis and also personal care products like shikakai, sherbets and spices that Indians otherwise shopped at
gramudyog outlets. They also plan to introduce other products from baby care to garments and from bio–fertilisers to healthy food, and also organic
cotton

Strategic Overview : Itlab And ECI Together Have Conducted...
1. Strategic Overview
itlab and ECI together have conducted an IT strategic review, and the below shows the results of the findings:
Observation Solution Action / Update
Insufficient bandwidth for internet connectivityIncrease internet connectivity bandwidthNew connectivity implemented in London and Manchester,
which is four times faster
Desktops are over 3 – 4 years old and are unreliableReplace desktops with faster newer ones for reliability and speedDesktops replaced in London and
Manchester with new version of Office 2016 and Windows 10 operating system
Laptops are not personalised, so the user needs to login into Citrix to access ECI systems. Files are regularly copied on USB to work locallyRollout
out new laptops with ... Show more content on Helpwriting.net ...
Offer a group training session on whoever wants it on a quarterly basisThe first one on video conferencing will start on 17th of August for the PA's
and then slowly be offered to everyone
Improve security by deploying a second generation anti virus software, educate users on cyber safety and follow a security framework for processes
and policiesImplement Bitdefender anti–virus cloud solution as it also stops malware and phishing attacks.
Gain Cyber Essentials accreditation to provide ECI with a security framework to managed threats and risks
Raise user awareness on Cyber Security threats Bitdefender is deployed now, and Cyber Essentials certification has been obtained, with small policies
to be implemented like password policy.
An external penetration test will be scheduled in Q4 along with an internal network scan
Simulated phishing test has been carried out and well as a cyber e–learning platform "Wombat." for all ECI staff
Simplify ECI network by removing aging hardwareMove to subscription cloud based services for better reliability and low maintenance TBA as this is
under review

2. itlab (Completed)
Support from itlab is still challenging even though they have helped ECI to implement the new

Freemium pricing of dropbox Essay
Huang Ge
MGT401
Prof. Patton, Joseph
2/3/2015
Case 2
1. Describe Dropbox's "Freemium Pricing strategy" to get users and revenue. What was this strategy? What did the company hope to accomplish with
this strategy?
Dropbox is a company providing remote–storage over the internet, cloud storage service as well. The "Freemium Pricing Strategy" is a popular pricing
strategy which company provide client a basic service without paying a dime and premium services were paid. Dropbox offers 2GB cloud storage
space for free and 1TB for $9.99 per month. The basic service attracts millions of customer to use and like it. On the other hand, the major revenue is
generated by paid customers which weights 60% of total revenue.
Moreover, Drew Houston, ... Show more content on Helpwriting.net ...
As well, in long–term, Dropbox builds brand image and cultivates customer habit. With huge potentials, Dropbox is valued at over 4 billion dollars.
2. What were the negative results or failures of this strategy, if any?
The competition of cloud storage market is very intense, which makes Dropbox profitability less sustainable. Consumers may turned into other giant
vendor such as Google, Apple and Amazon.
"Freemium Pricing" and incentivize mechanism bring some negative influence on Dropbox. Customer prefer to get more storage with recommend to
friends and their friend will do the same thing to get free upgrade by doing the same thing. This will increase Dropbox operation cost by purchasing
more servers and maintain them.
For venture capital investor, great volatility of future revenue means high risk. The value of Dropbox may be overestimated. Low user conversion rate,
loss of customers and make people always want use Dropbox for free will be hidden risk for Dropbox.
3. What was the strategy that Dropbox used for corporate/business customers? Describe this strategy and its results.
Firstly, Dropbox was applying the "Freemium Pricing Strategy" to acquire basic users. According to Drew Houston, his goal was to get individuals to
use and like it so much that they, in turn, got their employers to sign up as well. Dropbox was offering a product

Essay Marketing Pricing Strategy
Pricing Strategy
Today's highly competitive business world forces companies to create different tactics and relatively rely on multiple pricing strategies to conduct
business.
As is known, pricing is one of the most important steps for business plan which needs good research, calculations and formulations. There are different
pricing strategies to put into effect due to the market and product conditions, such as premium pricing, penetration pricing, economy pricing, price
skimming(VoiceMarketing, 2012). These four pricing strategies are main pricing policies. They form the bases for the exercise. However there are
other important approaches to pricing. These pricing strategies are: Psychological pricing, product line ... Show more content on Helpwriting.net ...
Price skimming also is not suitable with Optima's services. Optima's pricing strategy is Premium pricing
The definition of Premium pricing strategy is, using a high price where there is uniqueness about the product or service. This approach is used where a
substantial competitive advantage exists. Such high prices are charge for luxuries, free delivery–pick– up service, service quality, special chemical free
products and prestigious presentation.
It is an example for "Price as a cue to quality" (Iacobucci, 2010, p. 112).When Optima's customers experience the convenience of the service; they will
gladly accept the higher prices. Related to Optima's service and product quality, company implemented premium pricing with attractive promotion
offers to support the higher price policy and make the prices more acceptable. This matrix categorizes and shows the relationship between quality and
pricing strategies (Marketing Teacher). As mentioned above, because of The Optima's high end service and product quality, while implementing
premium pricing, company aims to reduce the prices slightly without effecting negatively its "high–end image" and company exerts different
promotional offers to support the higher price policy and make the

CVS BUSINESS PROPOSAL
Introduction In the United States, CVS is the largest pharmacy retail organization. This company operates over 6100 retail stores and specialty stores
countrywide and has employed over 170,000 workers. There is a necessity of offering a wider range of prescription medication options and selections
system–wide in a struggle for serving the consumer base of CVS Pharmacy more consistently and effectively. The purpose of this paper is to select a
more realistic good or service for an existing industry. The paper will identify the market structure, along with elasticity of the product and will also
include the way the pricing will relate to elasticity of the product. Furthermore, the paper will include the way the changes in the ... Show more content
on Helpwriting.net ...
Rollins, Matthew Perri, 2013).
Marginal Cost & Revenue
A way to determine the quantity of profit maximization is to conclude where marginal revenue equals marginal costs. Rather than computing the
profit for all levels of sales; total revenue and total variable costs are considered. Marginal revenues and marginal costs are considered in a similar
way like marginal profit, thus defining the amount of change for all sales' levels (Huter, 2012, p.2).
Pricing & Non–Pricing Strategies
CVS needs to think through numerous elements impacting its' business. Pricing strategies, rivals and their current products, consumer demands and
suppliers are examples of these elements. For pricing strategies, CVS should consider closeouts, discounts, product bundle pricing, penetration pricing,
geographical pricing, and membership or trade pricing. For non–pricing strategies, options comprise: enhanced service quality, longer opening hours,
advertising, and extended warranties (Kimmons, n.d.). By pricing similar products in a different way they must focus on regional demographics
because geographic pricing enables the maximization of profit. For promoting unique or new products at provisional price drops, penetration pricing is
the most effective. Finally, bundle pricing and closeouts can be engaged when several

My Product 's Value Proposition
Sales My product's value proposition is due to several advantages my product offers. First off, my product is unique. There is nothing else like it. Six
months after using the highlighter, the color fades by using a certain chemical in the ink and it leaves the book looking untouched. This is great for
college students whose courses are normally only a semester long. This leaves the textbooks reusable and resalable. My product is great for college
students because renting textbooks is the most common way students get them. With my product, students do not have to worry about ruining their
textbooks and can still study everything they need to with the help of this efficient highlighter. The cost of my product would be reasonable for college
students as well, most likely ranging from $3.00–$4.00, similar to my competitor, Sharpie; although, Sharpie's pricing can range a little more on the
high side for office supplies. My product; however, offers a feature that my competitor's does not, which is the color fading in six months. My
product and my competitor's product offer some similar value proposition, but not nearly the same. Both of our products are offered at reasonable
prices and serve the same purpose, to make information pop out so the user remembers whatever he or she highlighted. My competitor does have an
advantage over my product in which their brand name is already well known to the public and is known to be trustworthy. Although my product is new
and lacks this

Markpten2 Case Study
The MarkTen2 is a product of innovation and intends to push the boundaries of the industry. With such revolution comes the threat of incorrect pricing
which may lead to the diminishment of a product before it even starts. Altria is a company that strives to provide value to the customer; allow the
benefits each individual receives from the MarkTen2 to have far more impact than theprice to have it. Altria intends to approach the MarkTen2pricing
as a mix of both demand and competition–orientated focus. As the electronic cigarette market has shifted away from Altria to other competitors, the
MarkTen2 price will penetrate the market with a perceived discount compared to competition while taking full advantage of what the company knows
the ... Show more content on Helpwriting.net ...
This pricing objective allows Altria to focus on both gaining sales and increasing market share. Altria is fortunate to have a strong financial position
that it is able to sustain lower introductory margins in order to beat out competition and gain market prominence. Constraints must as well be addressed
before they become a threat to both the product and the brand. The MarkTen2 intends to capitalize on the consumer demand for both the product and
the brand. As electronic cigarettes become a more popular alternative to regular tobacco products and an interest to non–smokers, the new and
innovative product will position itself out of the unhealthy eye and serve a better purpose to the end consumer. It is obvious that Altria as a brand is a
giant in the industry and has a methodology to both gain and retain loyal customers. The MarkTen2 will serve as a beneficial compliment to the
direction Altria is headed and the future of the tobacco

Pricing Strategies : Pricing Strategy, Skimming, And Life...
There are many different types of pricing strategies that can be used; however, there are three pricing strategies that are more commonly used with
entrepreneur than the other pricing strategies. These three pricing strategies are: penetration pricing strategy, skimming, and life–cycle pricing.
Penetration pricing strategy is best used if entrepreneurs is presenting a new product that might make customers weary of. Penetration pricing sets the
price just above the total unit cost to help the company develop a wedge in the market that allows the company quick access to the high volume of
sales. The penetration strategy helps to discourage similar competitors from entering the market place giving the company a sense of stability. A
penetration pricing strategy works if the companies' products or service does not costs too much to produce or serve. Skimming is another pricing
strategy that entrepreneurs can use when deciding pricing. Skimming pricing strategy is often used when a company introduces a unique product into
the market with little competition (PG 94). Skimming pricing strategy allows the entrepreneur to set its prices higher than others because the customers
have a higher spending power and these customers are willing to pay more than other customers. Also, this strategy is used so that an entrepreneur can
retain its profit quicker than normal because of the higher price. When entrepreneurs sets their prices higher this tells potential customers , this higher

Marketing Pricing Of Retail Industry Essay
1.1Introduction
This chapter examines the background of the organization under study. It seeks to answer any question regarding to product pricing in retail industry. It
provides for the objectives and research question and also establishes the purpose of the study revealing its significance the limitation and the scope of
the study.
1.2 Background of the Study
Pricing is the value placed on good or service by sales force to some point in time .A price placed in the market will be higher or lower than the
value perceived by potential sale force does not really contain the customer's orientation necessary to market the product or service .Pricing is major
factor that keeps the economy activity. The employment of any or all the factor of production i.e. land labor and capital are dependent upon the price
received by each (Stin, 1998).
Product pricing is regarded as the least exiting element of the marketing mix however it is the only element that directly relates to income and also an
element which crosses over dramatically to other element .Promotional campaigns frequently carry messages about price, sales promotions are often
based on price reduction and discount, price coveys message about the quality of the products and it can even discount, price conveys message about
the quality of the products and it can even control the features and benefits of the products (Stin,1998).
Stin (1998) states that price also has a strategic element since it commonly determines how

Basic Pricing Strategies For A New Backpack Entering The...
The price strategy defines the initial, base price and the appropriate strategy depends on the pricing objectives. There are three basic pricing strategies
for pricing a product or service: price skimming, penetration pricing and status quo pricing. Effective marketing involves the price being set to equal the
perceived value of the product, a backpack, to the target market, university students. The following sections discuss the alternative pricing strategies, the
advantages and disadvantages of these and the most appropriate strategy for a new backpack entering the market.
Price skimming, also known as market–plus, involves setting a high price when compared to the competition and then eventually lowering this price. It
is usually used for new products and services that will attract early–adopters willing to pay a higher price. The business can initially reach these
early–adopters to maximise revenue, but this may be limited because students are often price–sensitive due to their low income. However, the higher
price enables companies to test students' willingness to pay a high price, and then lower the price to appeal to those who are more price–sensitive.
Although, this may aggravate early adopters, a lasting high price may defer mass market acceptance. The initial high profit margin may lead
companies into avoiding cutting production costs which is necessary for when the selling price lowers. However, price skimming allows the company
to quickly recover product

Marketing Pricing Strategy For A Company
A business should incorporate a good pricing strategy that is suitable to the company's current position in the market in order to increase profit.
When adopting a well set pricing strategy, the company has a key option to stay feasible. To earn more profit, a company should avoid raising the
price of a product especially during an economic recession. This action will only raise the risk of a company hitting a major loss in the product market
because of the price factor. A product mixpricing strategy is the strategy for setting a product's price often has to be changed when the product is part
of product mix such as product line pricing, optional product pricing, captive product pricing, by–product pricing and product bundle pricing. Choosing
which strategy to implement relies merely on which product or service is being offered. In addition, when having decent product mix pricing strategies
that are not enough, then an enterprise would also need to properly adjust the prices to accommodate various customer differences and situations by
incorporating various price adjustment strategies. These strategies include Penetration Pricing strategy, Bundle Pricing strategy, Premium Pricing
strategy, Product–Line Pricing strategy, Skimming Pricing strategy and more. Penetration Pricing is opposite from price skimming, it is off the idea
that a company compromises their prices to be set low so that they may maximises share of the market as much as possible. This is usually

Pricing Strategy
Pricing Strategy and Channel Distribution
Pricing Strategy and Channel Distribution
Determine and discuss a pricing strategy (Penetration or Skimming).
The pricing strategy for Crystal Light Kicks will eventually be in line with current pricing of other Crystal Light products as the Crystal Light brand is
already in existence. Current Crystal Light pricing is at a suggested retail price of $2.56 oz for a 1.4 oz package ($3.54) that includes 10 on the go
packets and $1.25 oz for a 3.2 oz canister which can make a 12 quart pitcher ($4.00) according to Pea Pod by Giant supermarket (Peapod.com). The
initial pricing strategy for Crystal Light Kicks will take a penetration pricing strategy to introduce the product to assist in ... Show more content on
Helpwriting.net ...
The manufacturer is Crystal Light and the process will begin with them. The manufacturer is the first step in the marketing distribution channel analysis.
They are responsible for making the product, promoting, pricing and any other financial related duties related to getting the product to the retailer
/wholesale chain. The manufacturer will also take care of the primary marketing and advertising responsibilities to make consumers aware that the
product exists through the existing Crystal Light website, television and paper advertisements. The product is shipped directly to the wholesale or
retail chain that will display and store the products. The retail and wholesale shops will also participate in some level of advertising for the product.
Individual supermarkets and wholesale chains such as BJ's and Costco have weekly circulars that feature certain products and Crystal Light Kicks
will be advertised in these circulars in line with the promotions available for the product. The last step is getting the product out to the consumers.
The retail and wholesale chains will stock the marketplace with our goods and provide consumers with a means to purchase Crystal Light Kicks. The
distribution strategy is a basic strategy to provide Crystal Light Kicks to our target market segment. Crystal Light Kicks is considered consumer
package goods and will be distributed intensively as opposed to

Kodak A New Line Of Printers
Mohammad Alazzam MGMT522 Understand the firm challenge Kodak is American Technology Company that was found in 1890s. Kodak main
focus is photography and imaging product. Recently, Kodak decided to enter the printers industry by designing a new line of printers that produce
high quality photos. Kodak also will introduce a new line of printer ink, and photo paper. Kodak main challenge is competing against the market
leader in the printing industry Hewlett Packard (HP) which has the largest market share in the printing industry. Also, Kodak is entering the market
twenty years late than its competitor in the market who are more experience in term of the wants and needs of the consumers. In addition, increase
in the industry rivalry with HP and risk in new product and offering would be a challenge that Kodak management has to overcome in order to stay
successful in business. Identify the problem Kodak main problem is what price strategy they should use in order gain more maximize profit and gain
market share in the printing industry. Kodak is entering a market that's mostly controlled by HP and therefore, Kodak management should be careful
in what price strategy they should use in order to make more profit. Kodak might engage in a price war with other competitors since they offer
printers and ink cartages that's %50 cheaper than its HP and other competitors. HP strong connection with retailer will make it harder for Kodak to get
its product in the store shelves, therefore,

Pricing Strategy and Distribution
Nature Beauty Price strategy will be the penetration theory for my product. Penetration is pricing low to stimulate the sales, encourage trail, and trigger
by word of mouth. Nature Beauty's mineral powder foundation will not be a new product that no company has similar to. We will need to start by
gaining the trust of the consumers by word of mouth and different marketing strategies to the targeted customers. This way once the product has some
buzz and customers appreciate the products value, we can price the mineral powder foundation at higher price do to the demand of the product. The
competing cosmetic company has a similar product that claims help the skin improve. This company will be established in the cosmetic industry and
customers ... Show more content on Helpwriting.net ...
However, even though it's easier to start high and lower prices later down the line, depending on sales of the products, we don't want to jump the
broom on the price set. We believe that we meet the expectation for a higher price and will strive to become a brand that can set a premium price like it
leading competitors. Nature Beauty does want to use the theory framing on the products that compliments the mineral powder foundation. Framing is
pricing higher prices and then discount to make the consumers feel better. There will be promotions that will give consumers the chance to try these
products such lotion, facial cleanser, beauty bar soap, make–up remover wipes, and future idea products for free or at a discounted price. But they will
not always be on sale. Nature beauty will push these products out individually starting out high then discounting them after we introduced the new and
latest product.
Legal issues and Ethical issues in pricing tactics are very slim. We are pricing competitively against our competitors. Nature Beauty is not pricing to
high and pricing to low. We believe that we are taking a competitive approach against the leading competition. There shouldn't be any ethical issues with
the pricing either.
The Distribution Channel is a path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated
by them that flow in the opposite direction

Pricing Strategy and Channel Distribution.
Pricing strategy and Channel Distribution.
Strayer University
Author Note Silp Dhanasin, Master of Business Administration, Strayer University Correspondence concerning this article should be address to Silp
Dhanasin, Master of Business Administration, Strayer University, 500 Redland Ct#100, Owing Mills, MD 21117
Abstract
Gravity Co., Ltd is a start–up game on mobile business, and because the company intends to establish its market share; it will be utilizing the best
pricing strategy and tactics, as well as the most practical distribution process. The pricing strategy defines what the main focus in pricing the mobile
news games offering of the company is. While the pricing tactics will allow the company to gain market ... Show more content on Helpwriting.net ...
Predatory pricing is the strategy of pricing the product at a very low price to drive the competitors out of business.
The Gravity understands that the violation to the laws on pricing will result to legal suits and complications thus; it intends to follow by the law while
it keeps its competitiveness. It is possible because the company will do its best to lessen its production costs by acquiring the least amount of third
party provider, and by employing the highest quality telephony modules available in the market, to create maximum amount of messages and game
applications for its customers.
In case of prepare a marketing distribution channel analysis identifying the wholesaler, distributor, and retailer relationships. The company will have
the Internet website where the customers can directly purchase mobile news games of Gravity company through downloading from the company
website and uploading to their mobile devices. The company will also partner with mobile services providers as its primary channel of distribution; for
instance, Apple will include our URL links in the Internet menu of their cellphones, as an additional game option for their customers. The company
earns when the customer clicks the link and enter the company's gaming interface. The company will also partner with internet mobile application
providers to sell our mobile games in their site, this should be made under strict contract to avoid

Compare And Contrast The Strategies And Tactics Of...
Strategies and Tactics for Effective Pricing
Pricing strategy is not a one–size–fits–all proposition. As you define the marketing strategy for your company, including your target market(s),
competitive advantages, and overall marketing mix, the range of appropriate pricing strategies emerges. For example, an exclusive, highly specialized
product targeted toward upscale consumers would logically be priced at a premium. However, at its point of introduction, it may have to be priced in
line with the competition until it is established as the market leader. At the same time, mass–market products may be priced at a lower level. You
should consider multiple factors when creating your pricing strategy.
Value Pricing Strategy: One popular strategy is value pricing, which is offering "more for less" by underscoring a product's quality, while at the same
time featuring its price. Value pricing is not just price cutting. It means finding the balance between quality and price that will give target customers the
value they seek. Value pricing began in the 1990s as a reaction to the glitzy eighties, when marketers used high prices to pitch luxury and extravagance.
Companies like Wal–Mart and Procter & Gamble have effectively used value pricing. This strategy requires a delicate balance, to avoid customer ...
Show more content on Helpwriting.net ...
It is the simplest cost to calculate, once your complete costs are known and your desired rate of return is established. However, it fails to take marketing
vision and market conditions into consideration. For example, the competitive environment is neglected, as is the value of the product or service to
your targeted customers. Markup pricing is a cost–plus pricing strategy in which you apply a predetermined percentage to a product's cost to obtain its
selling price. Markup pricing is described in greater detail later in this

LDR/300 LT
Petco Marketing Plan Phase III
Team B
MKT/421
July 24, 2013
Do. Smith
Introduction
Petco is in the process of developing a product that is about to be introduced into the market world for the aid of pet allergies. This product is called
Sneeze–Free. Petco's intention for this product is for the potential to improve the lives of individuals who have allergies to pets. Sneeze–Free can also
make it possible for individuals who cannot own or be around pets because of allergies, have more of an opportunity to own one. Even though this
product formulation is a first of its kind there are still similar sprays, and allergy products that will compete against Sneeze–Free. With this product
already proven to be popular in the ... Show more content on Helpwriting.net ...
One year for marketing and advertising the product, and one year for saturation. With continuous advertising in the maturity stage, Sneeze–Free can
stay in the profit column in the maturity stage and avoid entering the decline stage. Competition for the product will likely be high at this point. The
product will rely on its branding that it has earned, and effective marketing strategies to stay competitive. Petco may consider introducing another
product that could partner with Sneeze–Free to be more effective. This could rejuvenate the sales and interest in Sneeze–Free from the consumers. The
key to success for surviving through the sales decline stage of the product life cycle for Sneeze–Free will be the loyal base of consumers that the
product adopts in earlier stages. During this stage, there could be enough competition that Sneeze–Free will be one of several products that consumers
can choose from. The product will have earned a good name and brand for itself, but the promotions, price, and placement can help it be successful
through this last stage of the product life cycle.
Positioning and Differentiation Strategies The pet supply retailer Petco has developed Sneeze–Free as a convenient alternative to expensive medication
and time consuming pet shampoos. Because Petco being unknown as a manufacturer, creating a product with differentiated value for the customer will
be challenging. Competing with other manufacturers with pet allergy control products

Penetration vs Skimming Pricing Strategy
The pricing strategy for a new product should be developed so that the desired impact on the market is achieved while the emergence of competition is
discouraged. Two basic strategies that may be used in pricing a new product are skimming pricing and penetration pricing.
Skimming Pricing Skimming pricing is the strategy of establishing a high initial price for a product with a view to "skimming the cream off the
market" at the upper end of the demand curve. It is accompanied by heavy expenditure on promotion. A skimming strategy may be recommended when
the nature of demand is uncertain, when a company has expended large sums of money on research and development for a new product, when the
competition is expected to develop and market a ... Show more content on Helpwriting.net ...
Penetration Pricing Penetration pricing is the strategy of entering the market with a low initial price so that a greater share of the market can be
captured. The penetration strategy is used when an elite market does not exist and demand seems to be elastic over the entire demand curve, even
during early stages of product introduction. High price elasticity of demand is probably the most important reason for adopting a penetration strategy.
The penetration strategy is also used to discourage competitors from entering the market. When competitors seem to be encroaching on a market, an
attempt is made to lure them away by means of penetration pricing, which yields lower margins. A competitor's costs play a decisive role in this
pricing strategy because a cost advantage over the existing manufacturer might persuade another firm to enter the market, regardless of how low the
margin of the former may be. One may also turn to a penetration strategy with a view to achieving economies of scale. Savings in production costs
alone may not be an important factor in setting low prices because, in the absence of price elasticity, it is difficult to generate sufficient sales. Finally,
before adopting penetration pricing, one must make sure that the product fits the lifestyles of the mass market. For example, although it might not be
difficult for people to accept imitation milk, cereals made from petroleum products would probably have difficulty in becoming popular. How low the

Advantages And Disadvantages Of Creaming
Creaming or skimming[edit]
In most skimming, goods are higher priced so that fewer sales are needed to break even. Selling a product at a high price, sacrificing high sales to
gain a high profit is therefore "skimming" the market. Skimming is usually employed to reimburse the cost of investment of the original research into
the product: commonly used in electronic markets when a new range, such as DVD players, are firstly dismarket at a high price. This strategy is often
used to target "early adopters" of a product or service. Early adopters generally have a relatively lower price–sensitivity – this can be attributed to: their
need for the product outweighing their need to economise; a greater understanding of the product's value; or simply ... Show more content on
Helpwriting.net ...
First–degree price discrimination
– The business charges every consumer exactly how much they are willing to pay for the product.
2. Second–degree price discrimination
– The business uses volume discounts which allows buyers to purchase a higher inventory at a reduced price. While this benefits the high–inventory
buyer, it obviously hurts the low–inventory buyer who is forced to pay a higher price. This buyer may then be less competitive in the downstream
market.
3. Third–degree price discrimination
– This occurs when firms segment the market into high demand and low demand groups.[16]
Firm need to ensure they are aware of several factors of their business before proceeding with the strategy of price discrimination. Firms must have
control over the changes they make regarding the price of their product by which they can gain profitability depending on the amount of sales made.
The price can be increased or decreased at any point depending on the fluctuation of the rate of buyers and consumers. Price discrimination strategy
is not feasible for all firms as there are many consequences that the firms may face due to the action. For example: if a firm sells a product to their
customer for a cheaper price and that customer resells the product demanding a higher price from another buyer then the chances of the firm failing to
make a higher profit is predicted because they could have sold their product at a higher rate than the re–seller and made further

Marketing Strategy: Marketing Objectives Of Coconut Ketchup
B. Marketing Objectives
The marketing objectives of TEAM TOCOK are to be able to introduce a new product made out of coconut which is abundant at our target location
Barangay Tococ, San Fabian, the decided product would be ketchup wherein we will be substituting coconut for its base. We believe that Coconut
Ketchup will be able to compete against other competitors because of its healthiness, this includes fat loss, better brain function and various other
amazing benefits, another way we can compete well is increasing our brand awareness through active advertising via social networking sites, not only
are we able to increase awareness but we will also be able to communicate with them. To increase the success rate of this feasibility study we will be
conducting surveys to determine what the potential consumers want and expect of the product. ... Show more content on Helpwriting.net ...
Marketing Strategy
No one strategy is best for all companies. Each company must determine what makes the most sense give its position in the industry and its objectives.
Each company must determine what makes the most sense give its position in the industry and its objectives.
Our product's winning strategies would include:Description
1. Overall cost leadershipOur company will work hard to achieve the lowest production cost and distribution costs. We will introduce our product in the
market at low price, but not to sacrifice profit. Low costs price lower than its competitors will win large market share and eventually competitive with
the leading brands.
2. DifferentiationHere our company concentrates on creating a highly differentiated product line. Our product's main ingredient is coconut which
makes is very unique with other common leading brands in the market. Consumers would be curious to try our product.
3. FocusHere, the company focuses its effort on serving smaller market by making them available in the locality of San Fabian, Pangasinan rather than
going to a large market.
4. Customer

Emotional Strategies: Chatime's Theory Of Pricing Strategy
Pricing strategy can be defined as the strategy that aimed on finds the product best selling price to accomplish overall organizational objectives
(Kurtz, 2012). Pricing strategic is directly related to product positioning. It is because the managers must consider how much the target market is
willing to pay and cover back of the product cost. Therefore, Chatime has decided to lower its prices on milk tea to target on common people.
First of all, penetration pricing is the major determinant of the price and that is employed when the product managers have to give most of the value to
the customers and keeps a small margin. Chatime decided use penetration pricing where set a lower price of milk tea than the eventual market price to
attract ... Show more content on Helpwriting.net ...
Therefore, Chatime using psychological pricing strategy which is set those ending with nines or other odd numbers on all beverages to stimulate
consumer demand and sometimes these are referred to as "just below" prices as they are often "just below" an even price such as RM1.99 vs
RM2.00. For example, Chatime instead of charge RM6 for a milk tea beverage you might charge RM5.99 per beverage. Some consumers associate
the price closer to RM5 than RM6 even though it is only one cent less and they may subconsciously be partially ignored. The theory that drives this is
that lower pricing such as this institutes greater demand than if consumers were perfectly rational. Psychological pricing is one cause of price points to
get more customers and the psychological pricing method helps Chatime build an impression of the brand without making significant changes to the
product. Simply revising the pricing structure can make the product seem like the best on the market compare with other competitors or elevate the
Chatime's milk tea to the top of the available options. Although the price of Chatime's milk tea is lower than competitors, customers are those who
important of quality and price attributes will buy the products too. It is because customers are relatively insensitive to the product price. Customers
willing to pay more for own

Glitzz: Devising a Pricing Strategy
08
Fall
Marketing Individual Assignment 5
08
Fall
Marketing Individual Assignment 5
Glitzz: Devising a Pricing Strategy
1. What factors influence the pricing decisions for a product such as Glitzz? Analyze these factors and comment on the range of prices that can be set
for Glitzz.
Price is the amount of money given in exchange for the ownership or use of a good or service. Firms, like Glitzz need to consider the amount of
money that consumers are willing to give up in exchange for their products.
In making pricing decisions, firms, like Glitzz must first consider a few factors:
Company Factors
Pricing Objectives
Pricing Objectives involve specifying the role of price in an organization's marketing and strategic plans. These ... Show more content on
Helpwriting.net ...
* Competitors' Prices
Considering only the direct substitute products (i.e. Brilliant Restorer and Connoisseurs) in the market, the price of Brilliant Restorer was not stated.
Hence, the only price that can be compared with would be the price range of Connoisseurs, between $14.00 and $16.90.
Consumer Factors

Demand
* Availability of Substitutes
Glitzz faces direct competition of similar products from a few sellers, namely Brilliant Restorer and Connoisseurs.
Brilliant Restorer bears the most similarities to Glitzz and both cleansers come in the form of sprays. Connoisseurs differ in the method of application,
as it comes in the form of a brush and tray.
Powervescent is not considered as a direct existing competitor in the market as its shop is yet to be set up. In addition, it intends to sell via its future e
shop, which targets a different consumer group as Glitzz.
At the current stage, the jewelry cleaning machines also target a different consumer group, as compared to Glitzz.
Hence, Glitzz should focus on capturing customers from Brilliant Restorer and Connoisseurs, using them as a benchmark for price and product features.
Price Elasticity of Demand (Ep)
Price Elasticity of Demand is the percentage change in quantity demanded relative to a percentage change in price.
Ep = Percentage change in quantity demanded / Percentage change in price
However, as Glitzz is still a new

Eurotunnel Vs. The Ferries Case Summary
Eurotunnel vs. the Ferries Case Analysis
Marketing Problem:
The main problem faced by Eurotunnel's senior management is that they have not developed a competitive pricing strategy to increase its passenger
and freight travel market share.
Case Solution:
Eurotunnel should use a market–penetration pricing strategy at all times to gain freight customers. It should use a market–penetration pricing strategy
during non–peak periods and a premium pricing strategy during peak periods with passenger car customers.
Rationale:
This strategy works best for Eurotunnel to gain market share for three main reasons: * Passenger preference among Le Shuttle users * Patterns among
peak travelers * Price elasticity of freight traffic ... Show more content on Helpwriting.net ...
During the common peak travel periods, Eurotunnel will be able to compete on its capacity and speed competencies rather than price.
Freight users in general go out of their way to get the lowest cost of trip and are very price elastic. Since trucking companies would take a longer
ferry route in order to reduce the cost, it can be inferred that by offering a cost even slightly below that of ferries at all times to freight transporters, Le
Shuttle will be their preferred choice. By entering the market with a price lower than the ferries, the trucking companies, which have an estimated price
elasticity of demand of –3 to –4, will flock to the lower price and will unlikely ever return to the higher priced provider. Paired with other factors
valued by the truckers, it is likely that a low price offer from the tunnel would quickly make it the first choice in channel crossing among truckers
themselves as well as trucking companies.
Eurotunnel will be able to support the increase in customers as well as the market–penetration pricing strategy. Eurotunnel currently has the capacity to
accommodate 105% of the channel crossing market. Thus, even in peak periods, Eurotunnel will be capable of accommodating the influx of passengers
without compromising on schedules or service. Eurotunnel also has low marginal cost per customer, operating

Management Accounting
cco
Management Accounting Tutorial 5
15–3. List and briefly describe 4 major influences on pricing decisions
Customer Demand: the demands of customers are of paramount importance in all phases of business operations, from the design of a product to the
setting of its price. Product–design issues and pricing considerations are interrelated, so they must be examined simultaneously. For example, for a
higher quality product; you need higher quality materials which will affect a higher cost and needs more time and this will lead to a higher pricing on a
product. Also, a manager must not price its product out of the market price range.
Actions of Competitors: companies must keep an eye on its competitors. If its competitor reduces its ... Show more content on Helpwriting.net ...
– Absorption–cost or total–cost pricing formulas provide a justifiable price that tends to be perceived as equitable by all parties. Consumers generally
understand that a company must make a profit on its product or service in order to remain in business. Justifying a price as the total cost of production,
sales, and administrative activities, plus a reasonable profit margin, seems reasonable to buyers.
– When a company's competitors have similar operations and cost structure, cost–plus pricing based on full costs gives management an idea of how
competitors may set prices
– Absorption–cost information is provided by a firm's cost accounting system, because it is required for external financial reporting under generally
accepted accounting principles. Since absorption–cost information already exists, it is cost–effective to use it for pricing. The alternative would involve
preparing special product–cost data specifically for the pricing decision. In a firm with hundreds of products, such data could be expensive to product.
15–14. What is the primary disadvantage of basing the cost–plus pricing formula on absorption cost?
The primary disadvantage of absorption–cost or total–cost pricing formulas is that they obscure the cost behavior pattern of the firm. Since
absorption–cost and total–cost data include allocated fixed costs, it is not clear from these data how the firm's total costs

Pricing Strategy ...
There are many ways in which the price of a product can be determined. The following are the foremost strategies that businesses are likely to use.
Contents
1 Competition–based pricing
2 Cost–plus pricing
3 Creaming or skimming
4 Limit pricing
5 Loss leader
6 Market–oriented pricing
7 Penetration pricing
8 Price discrimination
9 Premium pricing
10 Predatory pricing
11 Contribution margin–based pricing
12 Psychological pricing
13 Dynamic pricing
14 Price leadership
15 Target pricing
16 Absorption pricing
17 Marginal–cost pricing
18 References
[edit] Competition–based pricing
Setting the price based upon prices of the similar competitor products.
Competitive pricing is based on three types of ... Show more content on Helpwriting.net ...
The idea of selling at a loss may appear to be in the public interest and therefore not often challenged. Only when the leader pushes up prices, it then

becomes suspicious. Loss leadership can be similar to predatory pricing or cross subsidisation; both seen as anticompetitive practices.
[edit] Market–oriented pricing
Setting a price based upon analysis and research compiled from the targeted market. Also with the cost price.
[edit] Penetration pricing
Main article: penetration pricing
The price is deliberately set at low level to gain customer 's interest and establishing a foot–hold in the market.[2]
[edit] Price discrimination
Main article: price discrimination
Setting a different price for the same product in different segments to the market. For example, this can be for different ages or for different opening
times, such as cinema tickets. Market orientated pricing is also a very simple form of pricing used by very new businesses. What it involves is, setting
the price of your product/service according to research conducted on your target market.
[edit] Premium pricing
Main article: Premium pricing
Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers,
based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy

Identifying The Different Positions Strategies
7Q–7. what is positioning? Identify the different positions strategies presented in the chapter give examples of companies or products that illustrate
each Positioning Positioning is the last stage in the Segmentation Targeting Positioning Cycle. Once the organization for example Johnson & Johnson
decides on its target market. They then strives hard to create an image of its product in the minds of the consumers. The marketers create a first
impression of the product in the minds of consumers through positioning. Positioning helps organizations to create a perception of the products in
the minds of target audience. Going with example of Apple them the business man or women, person on the go, maybe someone who works in wall
street or lower Manhattan while Samsung is for the budget friendly consumer. The middle class teacher or even police officer who doesn't want to
over spend for a quality smart phone. A great example of a unsex product is.Garnier offers wide range of merchandise for both men and women. Each
of their brands has been targeted well amongst the specific market segments. Men, women, teenagers as well as older generation. Men sunscreen
lotions, deodorant, women daily skin care products, hair care products and teenager's hair color products Chapter 9 9Q–5. the president of XYZ
Manufacturing Company of Buffalo, New York, comes to you with a license offer from a company in Alaska. In return for sharing the company's
patents and know–how,

Medi-Cult
Medi–Cult, a Danish biotechnology company that developed and manufactured a cell culture media. The innovative new media developed was for In
Vitro Maturation (IVM) vs. In Vitro Fertilization (IVF). There are considerable differences in the two media primarily in side effects and discomfort to
the patient and in the cost of hormones. Medi–Cult now encounters two decisions to deliberate, upon the launch of IVM. First, the pricing strategy to be
utilized, skimming or penetrating. Second, the pricing design to contemplate between, multinational, regional, or global pricing. In reviewing and
analyzing the data given by the experts, it has been determined that regional pricing would be the best for Medi–Cult. One price for the United States, ...
If the pricing is too high, the volume of patients to be served may decrease, thereby, effecting profitability and availability to all those who need it.
Exhibit 4 of this case provides data from experts in the various countries on volume and low, medium, and high pricing. The data clearly indicates that
the US market is not price sensitive and volume does not change regardless of pricing. The skimming strategy and pricing in the US at the highest end
($2200/dose) would maximize profit and provide a perceived prestige of the new product. Medi–Cult has a 2–3year timeframe, where it is the pioneer
of this product and there are no competitors in the market. If after 2–3 years, competitors enter the market in the US, Medi–Cult has the option of
reducing pricing without harm as the profits have possibly covered research and development expense by that time. Since insurance reimbursement
varies across the nation and is low, this is not a key factor in making this decision. In addition, the US may have higher shipping costs, expense in
complying with FDA regulations and the difference in currency. However, Denmark, France and the UK have varying price sensitivities, free
treatments and insurance reimbursement seem superior in these countries. They have more uniform currency with EU. There are 3 scenarios to
consider: Pricing such that there is maximum profit in each country, pricing such that there is maximum profit in the region with less cumbersome
pricing strategy and third global pricing which may reduce profitability in general. Choosing regional pricing of $1167/dosage does not change the
volume for the UK or Denmark and may only slightly change volume for France. This pricing may keep competitors from entering the market quickly
as perhaps, it is not as attractive. $1167/dose is the maximizing profit level for the UK and the least impact on

Marketing Strategy on Indonesia
Marketing Strategy: McDonalds in Indonesia
The company I choice to do a marketing strategy on was McDonalds, "Ba Ba Ba Ba Ba I'm Lovin' it". I choice McDonalds because it is one of the
most universal and internationally known companies that will always and forever be known for its beautiful golden arches and Ronald McDonald
characters. Of course, I could have gone with Kentucky Fried Chicken or even Ikea but the thought of not talking about one of the happiest places on
earth, and I am not referring to Disney World, would be a disservice to our American culture. McDonalds has dominantly globalized and franchised
around the world and gives new meaning to what marketing really is about. It all comes down to the elements of the marketing ... Show more content on
Helpwriting.net ...
9th edition pg. 346).
McDonalds Pricing Strategies
McDonalds focuses of four major pricing strategies: product line, promotional, penetration, and value pricing. Product line pricing is a unique pricing
strategy that falls solely on their many product lines (McDonald's Pricing Strategies). Economic conditions may change rapidly, thus warranting change
in the product or the product line. During the Asian currency crisis, McDonald's replaced french–fries with rice in its Indonesian restaurants due to the
cost considerations. With the collapse of the local rupiah, potatoes, the only ingredient McDonald's imports to Indonesia, quintupled in price. In
addition, a new rice and egg dish was introduced to maintain as many customers as possible the economic hardship (International Marketing. 9th edition
pg.335). In order to appeal to the local demographic, international marketers must make sure products do not contain ingredients that might be in
violation of legal requirements or religious or social customs. Since Indonesia is in a Muslim country, McDonalds "Maharaja Mac" is made with
non–beef products (International Marketing. 9th edition pg. 336).
Value pricing is used where external factors such as recession or increased competition force companies to provide 'value' products and services to
retain sales." The

mkt311 tb chap13 Essay
ch13
Student: ___________________________________________________________________________
1.
Price is the cash expenditure plus taxes that consumers have to pay for a good or service. True False 2.
The key to successful pricing is to match the product with the consumer's perception of value. True False 3.
Price is the only part of the marketing mix that does not generate costs. True False 4.
If Brandon buys hats for his store for $5 each and sells them for $15 each, he is using a keystoning pricing strategy. True False 5.
Rarely is the lowest–price product offering the dominant brand in a given market. True False 6.
A demand curve shows the relationship between income and demand. True False... Show more content on Helpwriting.net ...
E. value of the consumer's time.
26.
Consumers judge the benefits the product delivers against the __________ necessary to obtain it.
A. monetary cost
B. profit C. variable cost
D. total return
E. sacrifice 27.
Dean runs a woodworking business specializing in kitchen cabinets. He knows there are other firms with top–of–the–line machinery that make better
quality cabinets, but he does well and has a constant flow of business. Dean obviously has:
A. figured out how to produce cheap products.
B. priced his products well.

C. reduced his variable costs by investing in fixed costs.
D. avoided monopolistic competition, and is instead in a market with pure competition.
E. learned how to use status quo pricing.
28.
If firms price their products too low, it may:
A. result in lower costs.
B. create a premium pricing effect.
C. increase contribution per unit.
D. result in inelastic demand.
E. signal poor quality.
29.
Gerald has a number of customers for his lawn care service who never question his bill but expect their lawns to be perfect. These customers do not
want low prices, they want:
A. a sales orientation.
B. fixed costs.
C. cross–price discounts.
D. a target return.
E. high value.
30.

Marketers can deliver high value through high or low prices, depending on:
A. profit contribution per unit.
B. the bundle of benefits the product or service delivers.
C. monopolistic competition.
D. target return

Optical Distortion
Introduction Optical Distortion Inc. is a small new company with a patent for an innovative new product which is a contact lens designed to impair the
eyesight of chickens. The analysis in this paper provides recommendations for ODI on their marketing and pricing strategy to launch this new product.
Market Segmentation There is substantial evidence in the case to suggest that ODI should segment the market based on flock size of the farms and
focus their marketing and sales strategy towards farms with more than 10,000 birds. As illustrated in Exhibit 4 of the case study, number of chicken
farms with flock size less than 10,000 has vastly shrunk between 1964 and 1969. This trend has continued and it is estimated that between 1975 and ...
Some of the advantages of an initial high pricing strategy are: 1) the high initial price does not attract competitors from the market 2) it communicates
the image of a quality product 3) can extract the maximum revenues from the market while facing no competition from other vendors, 4) leaves room
for initial promotions or bulk discounts. By 1979 ODI would have already gained enough market–share to effectively use economies of scale to bring
down their average costs allowing them to further lower their prices. A lower price will discourage firms from entering the market as potential
competition. There are some clear challenges facing ODI in terms of implementing the above strategy. Higher initial prices would require ODI to hire
some best–in–class sales people who can justify the price to farmers by convincing them with the value–analysis of the product and also meet the
aggressive penetration rate targets. This might push the cost of the product (pricing floor) further up eating into their operating margins. ODI should
continue investing in research to meet their goal of a multi–product and multi–market company in the long run.
Appendix A В– ODI 's value to chicken farmers
Number of Birds20,00050,00075,000100,000
Savings from reduced cannibalization* 2160.00 5400.00 8100.00 10800.00
Trauma savings**

Marketing Iphone
Q1: Apple faced with two main pricing decisions for its range of iPhones. The first one is a skimming price decision and the second one is a
penetration pricing decision. 1. Skimming price decision
When Apple first launched the new iPhone 3GS, it made a skimming price decision which means it aims to sell to the top of the market and focuses on
maximizing profits in short term so it could recover the research and development costs. 2. Penetration pricing decision
As the iPhones have moved through their product life cycle (from the introduction to the growth or maturity stage) Apple adopted a penetration pricing
strategy which means selling products at very low price to attract more customers. The rationale behind this decision was ... Show more content on
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2. Target costing one type of the demand– based pricing.
Apple could first use market research such as consumer surveys to identify the customers' requirements of the quality and features of the product and
their perception of a 'fair' price before the product is designed.
3. Trial pricing
Apple could price the new iPhone at a low price for a limited period of time to attract customers. This strategy can help the company to get customer
acceptance at the initial period and then bring profits by increasing the price.
Q4: As far as I am concerned, I would recommend skimming price and trial pricing strategy to Apple during its introduction stage of its product life
cycle. When Apple moves into the growth or maturity stage of life cycle, I would recommend the penetration pricing strategy.
In terms of a skimming price decision if Apple doesn't know much about the customer demand for its new product it would be useful. The reason is
that it is safer to start with a high price, which can be reduced if customers initially refuse to purchase. In this case, as Apple's senior vice–president
said the new iPhone 3GS has some unique competitive advantages in the phone market such as the wide range of applications and faster load time.
These benefits make many customers feel they must have it no matter what the costs, that is to say, during the introductory stage of the new product,
the demand is price

The Pros And Cons Of Penetration Pricing
1. Why might penetration pricing potentially negatively impact brand image and product positioning in the long run? Given this risk, why would a
marketing manager use penetration pricing? Identify a brand (other than the examples in the chapter) that you believe is engaged in penetration pricing.
Penetration pricing may negatively impact brand image and product positioning in the long run because it may give a brand a negative image of being
cheap. The opposite effect of what was intended may occur and even though the product can be bought for less, consumers may think the quality is less
because of that; along with that comes a decline in value proposition as well.
Companies do use penetration pricing because it allows for a strong barrier ... Show more content on Helpwriting.net ...
Identify a brand (other than the examples in the chapter) that you believe presently resides in this quadrant. In your opinion, why has the brand
undertaken this pricing strategy? Do you believe there are risks to the brand in remaining too long in that quadrant? Why or why not?
Keeping in tune with car brands, the Toyota brand offers high quality with an affordable price. With the work
–commute times rising, consumers need a
vehicle that can make the trip with great fuel economy and a reliable engine. Dating back to when Toyota launched its brand within the United States,
it has created several successful models that have made their way into consumer homes. Take the Toyota Camry for example, for it is widely popular
and noted for its reliability and fuel economy.
Toyota uses a marketing strategy that works for the brand and the consumer. Contrary to American brands which are always searching for the next best
thing, Toyota uses the motto, "if it's not broken, don't fix it". This ties in–hand with their pricing strategy effectively because the brand isn't spending as
much time from starting from stratch, but rather can focus on improving what the brand already

Pricing Objectives, Strategies & Promotional Mix of a Company
DISCUSS VARIOUS PRICING OBJECTIVES AND DESCRIBE PRICE SETTING TOOLS AND STRATEGIES (BOTH FOR EXISTING AND
NEW PRODUCTS)
Pricing is one of the major components of the marketing plan, which is a component of a full business plan. Assigning product prices is a strategic
activity. The price you assign will impact how consumers view your product and whether they will purchase it. Price also helps differentiate your
product from those of your competitors. However, the price you assign must be in line with your other marketing strategies and the product attributes.
Whether or not you develop a formal marketing plan, performing some of the research necessary for a marketing plan prior to determining the pricing
strategies implement is ... Show more content on Helpwriting.net ...
Status quo – seeks to keep your product prices in line with the same or similar products offered by your competitors to avoid starting a price war or to
maintain a stable level of profit generated from a particular product.
Survival – put into place in situations where a business needs to price at a level that will just allow it to stay in business and cover essential costs.
For a short time, the goal of making a profit is set aside for the goal of survival. Survival pricing is meant only to be used on a short–term or temporary
basis. Once the situation that initiated the survival pricing has passed, product prices are returned to previous or more appropriate levels.
Pricing Strategies
After selecting a pricing objective you will need to determine a pricing strategy. This will assist you when it comes time to actually price your
products. As with the pricing objectives, numerous pricing strategies are available from which to choose. Certain strategies work well with certain
objectives, so make sure you have taken your time selecting an objective.
Careful selection of a pricing objective should lead you to the appropriate strategies. If the pricing strategy you choose seems to contradict your chosen
pricing objective, then you should revisit the questions posed in the introduction and your marketing plan. Different pricing strategies can be used at
different times to fit with changes in marketing strategies, market

Advantages Of Pricing In Marketing
nts
Introduction1
Price in marketing1
Pricing strategy–Cross Subsidy1
Ethical issue in pricing–Predatory Pricing2
Advantages of predatory pricing3
Disadvantages of predatory pricing4
Example in pricing4
Summary of example7
Conclusion7
Reference7
Introduction Price is all around us. You pay accommodation fee for your hostel, tuition for your education. You pay transportation fee such asairline,
railway, taxi, and bus. And the bank charges you interest for the money you borrow, the price for parking your car at shopping mall. Your hairdresser
asks charge for cover his service. The "price" of an executive is a salary, the price of a salesperson may be a commission, and the price of a worker is a
wage. Price is the amount of money ... Show more content on Helpwriting.net ...
Most importantly it leaves them with very little reaction time. So in the initial phase not much competition is faced.
Good will among early customers
Happy at having struck a profitable deal the customers are ready to come back to the manufacturer in future. This goodwill created also leads to further
promotion of the product through "word of mouth".
Cost efficiency
The emphasis on keeping the price low helps in controlling the cost thereby cost efficiency is achieved.
Competitors are kept at bay
If a manufacturer adopts penetration pricing and lowers the price of his products or services he may stop competitors from entering the market. This
happens because now the competitors will have to enter the market at lower than existing prices. This reduces their profit not to mention the risk they
face as new entrants in acquiring market share.
Channel benefit

As this technique creates a quick turnover it keeps its retailers and distributers happy.
Disadvantages of predatory pricing The customer expects the prices to remain low for a long term. They are not ready for the subsequent rise in the
price and when it happens they might switch to a competitor's product. Thus subsequent price hike leads to loss of market share

Target Penetration : Penetrating Pricing Method
Price Penetration
Penetrating pricing method is one of the most important strategies used in business organization. The agenda of this strategy is followed by new
business with low price for a new product so that it gains a breakthrough in competitive market. The aim of the company is to attract customers by
keeping price lower than the already established competitors. It's typical in mass market product for example chocolates bars, food stuff, household
goods etc. Once the company gets stable in the market and the demand of the product increase price eventually increases. Penetration pricing method is
good to capture new market. Though in initial stages it creates loss for the company, the hope which remains there is the stability of ... Show more
content on Helpwriting.net ...
Price Penetration Examples in Australian Market
Example 1 (Manisha Shrestha–11500407)
Let's take the Hook and Bait Strategy followed by the Oral–B to penetrate its product in the market. Oral B Vitality Precision Clean is one of its
personal hygiene products. The Oral–B Vitality Precision Clean is a rechargeable toothbrush uses Advance Cleaning Technology to have fresh feeling
mouth and improved gum health. The price of the main product is only AUD $ 22.49 which comes with rechargeable cleaning power, 1 power brush,
& 2 packs of refill bristles but when you have to buy only the Oral–B Vitality Precision Clean refill bristles, the pack of 4 Flexi Soft bristles cost you
about AUD $ 24.95 which is comparatively higher than the whole combo pack. Here, the Oral B has used penetration strategy by lowering its price of
product to magnetize the customer and once they buy the product, they are bound to buy the same accessories for that product and make money out of
them.
Example 2 (Deepu Kd–11401312)
Telstra provides discounted rate for the limited period of time, for the first six month of the period they charge lower price and install for free. Once
the discounted period is over and the company realizes that the customer has become used to its service, the price of the service increases.
Example 3 (Manjinder Kaur–11300866)
Netflix is also currently following the price penetration

The Price Setting Of A Company
A spectacular product that a company might be selling can go bad if the product pricing is not done with proper evaluation. With too high a price, the
customers will run away and too low a price, the profits will not be substantial. Price setting is a complex task that requires consideration of costs to
the budgeting of key demographics.
The process of setting a price can be described in following 6 steps:
Select the price objective (Profit Sales/Status Quo)
Determine demand
Estimate costs
Analyze competitor price mix
Select pricing method
Select final price
The first step is Examining the Objectives. It is known that marketing decisions which involves price are driven by the objectives set by the
management of the organization. The objectives can be divided into two levels. Firstly, all the decision impacting any functional area (finance,
marketing, operations, etc.) in the organization are driven by the organizational objectives. Driven by objectives, marketing department sets its own
objectives which includes for instance ROI, ROMI, Cash Flows, and manizing profits. Pricing decisions are used to help each department meet its
objectives. Also, price setting procedure looks into whether the decisions made are in sync with the decisions made for the marketing decisions such as
target audience, product, logistics, and promotion. So a product from a company with a strong brand image having distinctive feature set and targeted
to high–class customers is expected to

Marketing Strategy Recommendations For Travel Insurance
MEDIBANK TRAVEL INSURANCE
PART 2– MARKETING STRATEGY RECOMMENDATIONS
EMMA HENTSCHEL
ID: 216152064
CONTENTS
1– BACKGROUND SUMMARY OF PART 1
2 – PRODUCTS AND SERVICES
3 –PRICING
4 – PLACE AND DISTRIBUTION
5 – PROMOTIONAL MIX 6 – CONCLUSION OF PART 1 AND PART 2 WITH IMPLICATIONS FOR COMPANY
1 – BACKGROUND SUMMARY OF PART 1
Summary of findings from part 1 target profile customer profile positioning strategy of the company In part 1 of this report about market analysis it
was found that medibank are seeking to expand their service of travel insurance as the market demand for the service continues to grow.According to
IBIS World(2016)Tourism has maintained a steady average of 3.5% annual growth between 2011–2016. The overall annual industry growth for Travel
insurance was 5.2% between 2010 – 20153. IBISWorld (2016) have also predicted that this growth in the Travel Insurance Industry will settle to an
average 2.1% annual growth within the next five years, as the market grows increasingly stable, maintaining the australian dollar remains high, natural
disasters are less frequent and that low fuel prices drive down the cost of airfares. But some of the most relevant information for forming Medicare's

marketing strategy is the statistics regarding the target demographic for Travel Insurance. In the travel report by the Australian Bureau of Statistics
68% of the Australian departure passengers were between the age of 20 and 60. While the statistics show that the

Essay on Nestle Frozen Food Product Development and Marketing
Although NRFC believe estimation of pizza sales could base on Contadina pasta's 24% market–penetration rate, more conservative calculation should
take different ranges of penetration rate into consideration. By choosing three possible penetration rates of 5%. 15% and 25%, the estimated results are
demonstrated in Exhibit 1. In all three scenarios, kit only concept will not make up to company's expectation. For kit and topping concept, only if
penetration rate reach to 15%, launch decision could be supported.
1.2 Sensitivity analysis shows that pizza sale will be largely influenced by penetration rate of Contadina pasta (Exhibit 2).
Q2 Similarities: Both launches of refrigerated pasta and pizza are aim to catch up the growing trend ... Show more content on Helpwriting.net ...
Therefore, Customers?needs of both high quality and convenience are well served. As a result, refrigerated pizza's claimed benefit might be weaker
than what refrigerated pasta could offer to customers. In terms of pricing, although BASES research indicated that price for pasta as a factor
influencing customers?favorability was less important that other factors such as quality, it might not be true for pizza case, because refrigerated pasta
has been priced close to competing substitute while its adding benefit of freshness has been well perceived by customers. Since take out pizza serve
high quality and convenience well, refrigerated pizza priced closely to this substitute at $7.69 for both kit and topping might not be able to compete for
existing fresh pizza market share. Moreover, its high price premium will also reduce its attractiveness to frozen pizza buyers. Furthermore, in terms of
product development, Nestle took advantage by purchasing on–going operation, Lambert's Pasta & Cheese, which already have the production
technology and had the marketing experience in this category. Therefore, although Nestle did not perform the test market for its pasta line, the purchase
of on–going operation reduced the risk of product launch. However, refrigerated pizza not only faced some technical difficulty that forced Nestle

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