Branding, Pricing, and Distribution Strategies

1691 Words Nov 18th, 2012 7 Pages
ASSIGNMENT 3

MARKETING PLAN
FOR
TEACH CHINA
BRANDING, PRICING, AND DISTRIBUTION STRATEGIES

This section of Teach China’s Marketing Plan will focus in on key factors related to branding, pricing, and distribution: creation and development of the domestic and global product branding strategy; determination of optimum pricing strategy; looking at how the pricing strategy supports Teach China’s branding strategy, preparation of a distribution channel analysis, justification of opting for a push or pull strategy; an overall look at how the distribution strategy fits the product/service target market.
It is very important that a start-up company, such as Teach China, build and develop a strong product brand. It is essential that such
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[ (Wasserman, 2012) ] This approach could return the greatest profit margin but would cause a fluctuation in price when other costs increase. According to Professor Osteryoung, one should be aware of what competitors are charging for the same service. Yet he cautions against competing on price. Instead, he suggests that service companies compete on service, ambiance, or other factors that set [them] apart," [ (Wasserman, 2012) ] The other factor discussed by Professor Osteryoung is perceived value to customers. Osteryoung points out that setting a price for a service can be subjective. He rightly posits that pricing (for a service) becomes an art form when one considers that “the important factor in determining how much (a customer is) willing to pay for a service may not be how much time was spent providing the service, but what the customer perceives as the value of the service and the level of expertise,” [ (Wasserman, 2012) ]
One method available for setting a price for the services offered by Teach China would be to use what has been called in some literature the “service pricing formula”. Simply put this method helps determine an hourly rate for services rendered.
Desired annual salary
+ Annual fixed costs (overhead)
+ Desired annual profit
÷Annual
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