Case Study Of Pricing In Revenue Management

Pricing Objectives involve specifying the role of price in an organization’s marketing and strategic plans. These

For instance, there are generic principles of pricing of desired net income, competitive position, and market structure. According to (Cleverly, Song, & Cleverly, 2011), every business must generate enough revenue through its sales of products and services to sustain its operations and provide for the replacement of its physical assets as well as provide a return to its investors. Partners Healthcare System and among other organizations must recognize levels of pricing, so inadequate pricing doesn’t accumulate to lead to business disaster.

In coming up with a pricing strategy, it is important to communicate the prices based on value created for different customers segment as lack of it always results in price sensitivity and intense price negotiations. Since it is not right to assume that every client understands the value of my products, it will be my responsibility to address this through effective pricing and value communication. For instance, as I will create an app for the restaurant, some of my clients may lack the knowledge to use it or may not understand how some features in the app might satisfy the unmet needs. In this case, I will ensure that my clients get to know the existence of the app and how to use it even if it need assistance from some specialized staff. I will also ensure that they get to know the benefits and values the features of the app brings in their dining experience. By knowing the value I offer them, they will be willing to pay for it.

Pricing is one of the most important elements of the marketing mix for the MARC. It is the only one of the components that generates revenue, while promotion, place, and product generate cost. Producing, designing, distributing, and promoting products come with expenses.

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

Pricing is a pertinent issue in procurement and acquisition in organizations. Consumers buying the commodities of an entity should get clarity on pricing related issues. There is uncertainty in Pro

* Long term effects of its pricing strategy (the company may not be able to continue if such pricing structure remains)

his case article summarizes two case series. Each case series includes three subcases and has an associated teaching note. These six short cases introduce many of the concepts that underlie the practice of airline revenue

MGM Resorts tend to serve a wide range of guests and customers with varying demographics. From Bellagio, with its higher end property appealing to the sophisticated higher income guests to Mandalay Bay that attracts the cooler hip crowd. The pricing strategy that MGM uses for its items is the pricing optimization strategy. The company tends to use the price optimization as a powerful profit level (MGM Resort, 2015). The factor that the company considers when pricing its products and services is determining the highest price it can charge so as to get the highest number of units sold. In this case, the strategy used is the cost-based pricing. The cost-based pricing tends to ensure that the pricing of products is so that to achieve an equitable contribution margin beyond and above the cost associated with producing the product.

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(Voice Marketing, 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

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

Based on these 6 factors in setting a price: selecting the pricing objective, determining demand, estimating costs, analyzing competitors costs, prices and offers, selecting a pricing method and selecting the final price, Singapore GP Pte Ltd employed 2 different pricing strategies. They are

Keeping these realities in mind, it is very much obvious that for this market, we choose and follow a value based pricing and do not keep the price of the product too high. It is advisable rather to follow an average pricing and let the consumers build some enthusiasm around the product.

Price interacts with all other elements of the marketing mix to determine the effectiveness of each and of the whole. The objectives that guide pricing strategy should be a subset of the objectives that guide overall marketing strategy. Thus, it is probably wrong to view price as an independent element of marketing strategy or to assert that price, by itself, is a central element in the marketing mix.” (Webster, 1979)

Research indicates that whilst a price reducing strategy, which is commonly used in response to strong competition, may see short term gains, rarely does it attract and retain new customers (Chan & Wong 2005). In Hong Kong many hotels have reduced their room rates to remain competitive, however the above implies that hoteliers would do better to understand how their services and facilities influence customer satisfaction rather than simply reducing