Pricing And Distribution Strategy Memorandum

875 WordsSep 5, 20164 Pages
Pricing and Distribution Strategy Memorandum With any pricing strategy, the price must match the branding of the product. For example, for a luxury item branded product, the price needs to be higher to coincide with the branding perception. A few pricing strategies to focus on include product cost based strategy, customer-focused strategy, and product life-cycle strategy. The distribution strategy also plays a crucial role in the successful implementation of a new product. Furthermore, MM Inc. needs to determine what distribution channels will have the greatest influential means to market and sell the new product. Pricing Before Mobile Marketing determines which pricing strategy to choose, the organization should consider the overall objectives. Which pricing strategy will fit best with the objectives of the new product development? Is the purpose to make the most amount of profit the fastest way possible, or to develop a long lasting relationship with the target market to establish long-term profitability and growth? Determining the key objective will help to discover which pricing strategy works best, however, the company has to make a profit to continue business. According to M.U.S.E. (2013), pricing involves the customer demand schedule, the cost function, and the competitors’ pricing. All three factors need to be addressed during the discussions of the following pricing strategies. The first pricing strategy is the product cost-based strategy. The
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