Marketing Pricing And Retail Strategy

1339 WordsFeb 14, 20166 Pages
Retailers purchase products from wholesalers, and sell products and services directly to their customer, therefore it is important that their pricing and retail strategy is perceived valuable by their target consumer market. Understanding what their customers want, when they want it, and how much they are willing to pay for it are key data points for marketing managers when determining strategy. When pricing and retail strategies coincide and portray value, the target consumer market positively responds. With numerous existing retail strategies ranging from small convenience stores to expansive warehouse clubs, as well as non-store retailers, in order for consumers to respond, it is important that product pricing agrees with the particular retail strategy. For instance, a customer might be willing to pay fifty cents for one banana (approximately $1.50 per pound) at a 7-Eleven convenience store, however would not be willing to pay that same price at a Costco warehouse club. In subsequent sections, by using the convenience retailer 7-Eleven, Inc. as an example, we evaluate pricing from a retail point of view, as well as analyze current market situations and competitive strategies. It is important for marketers to understand how product pricing impacts product demand. Determining whether your target market is sensitive or insensitive to price changes influences price setting strategies. Tanner and Raymond (2014) explain that “price elasticity, or people’s sensitivity to

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