I also agree with you in how you stated that the products price and value tie into one another especially when consumers are trying to determine what would essentially be the best option that meets their criteria of value. Likewise, it is important for companies to find significant and unique methods in which to make their product stand out and be the option of choice. Consumers want a product that is highly regarded but that also qualifies with price. They want to know that what they are paying for is of high standards and quality and worthy of the money being spent. Therefore, they look into every possible option to determine if the product meets brand loyalty and has the appeal to be different from their competitors items. You are
The company must factor in that each of their customers has lifetime value, a greater value than a small gain made on first sales. With competition in their sector, more penetration pricing would be appropriate. The penetrating pricing strategy would only make sense to retain customers; the pricing strategy must realize lifetime value, (University of Phoenix, 2011).
There have been many issues with the state laws regulating Marijuana in the US. I knew this would be a good topic to choose for this unit, and in this by article by John Hudak the case of Coats VS Dish Network is discussed; the case is a perfect example of how federalism can go wrong. The problem here was the misinterpretation caused by allowing states to regulate a classified “controlled substance,” while the subject matter has a different interpretation at the Federal level. Coats was terminated for using medical Marijuana outside of his work place to treat his medical condition. He argued his case by pointing out that the State of Colorado legally allowed him to be purchase medical marijuana legally for medicating.
Consumers always base their decisions on price. The price of an item is important as it can influence consumers to purchase the product or not. If a product is out of their price range most people aren’t likely to purchase the product unless
There are many outside influences that affect a company's profitability and bottom line. It is important for companies to set the right price in achieving that profit. Companies are in business to make a profit, but it can be challenging on how to determine how to price products. The grocery industry is a highly competitive market and today's grocery retailers use all kind of strategies to increase their sales and retain customer loyalty. With the fluctuating commodity prices and how online retailers (Amazon) entering in competition with the grocery retail business is becoming fierce. As competition for the food dollar intensifies, establishing essential marketing strategies is a key tool in sustaining business and building competitive advantages. In this paper, three U.S. supermarkets have been chosen to analyze their pricing strategies; Trader Joes, Harris Teeter, and Aldi.
Quite often, consumers purchase goods and services based on their perceived need. Upon making the decision that a need is present and a solution is available consumers are more equipped to react to that need. Although previously perceived that consumers will normally accept prices as presented by suppliers that remains to not be the case. Consumers assess and process prices based on past purchases and other psychological process they went through previously such as persuasive marketing strategies, accessibility of the goods or services and possibly information gathered from prior purchasers of a product. There are countless options that are available to consumers. Consumers are then faced with the choice of choosing the product that best fulfills their need at that given point. Consumers who are knowledgeable regarding prices will be aware of the approximated price for products (Zhao, Zhao & Deng, 2015).
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)
Your paper discussed the importance of pricing to a company's strategic position in the marketplace. The different considerations in the pricing strategies were also explored. You described good value pricing and the concept of loss leader as one of Wal-Mart's strategies.
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, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).