Pricing And Frequent Promotions Essay

(1) Wal-Mart’s promotional strategy of “everyday-low-prices” meant offering customers brand name merchandise for less than department and specialty store prices.

The key to successful pricing is to match the product with the consumer's perception of value.

However, I don’t agree with the fact that the government place rules on a merchant product. In the article, Zwolinski brought up the point on what is a “reasonable” price, and how does that vary. The government can use the word “reasonable” to their own benefit. Zwolinski also share that price gouging is very unfair on businesses. Price gouging can perhaps cause a business to not make a large profit. However, is a large profit for a business more reasonable than someone losing their life due to price gouging? Does a large profit for a business account for how many store owners can take advantage of many in low income minimum wage workers and

How do channel members add value? Provide information, promotion, or put business in contact with potential customers.

As a consumer, we all get frustrated when we think a listed price is “too high” whether it is a necessity, and we have to buy it, or we just really want it. Some of the largest complaints by consumers today are directed towards the cost of goods. Marketing research has shown us that the costs of some items are being intentionally raised based on aspects of the individual who is making the purchase. The manipulation of prices can be broken down into three main issues: price fixing, price gouging, and price discrimination. Are there any positive or beneficial reasons to do this? Yes and no, the following paragraphs provide information about each practice individually.

Part of establishing the menu is to chose the right price, a price that is competitive priced and ultimately profitable.

Herbert Hoover once said “Competition is not only the basis of protection to the consumer, but is the incentive to progress.” (Hoover, n.d.). Every company must progress over time and find ways that will draw in consumers. Using Target Corporation as an example, the company’s pricing strategy, covering company objective, competition and customers that belong to the five Cs of pricing, will be discussed. Then, Target’s retail strategy will be discussed using the four P’s; product, price, promotion and place.

The success of Wal-Mart is due in large part to its ability to consistently produce high quality products at a low cost. This is very critical to the future success of Wal-Mart because it provides consistency to customers who are price sensitive. By committing themselves to "Everyday low prices," Wal-Mart assures customers that the products sold within their stores are competitive in reference to its retail competition. This low price strategy also provides Wal-Mart with a

Walmart serves nearly 260 million customers weekly across 27 different countries, both in stores and through its websites (“Fortune”, 2015). Walmart relies heavily on its proper and effective marketing strategies; Walmart would not be able to achieve the level of success without these strategies. Low prices, easy access for its customers, and social media campaigns are a few of the vital tactics Walmart has used in its marketing plan. “Save Money. Live Better” is Walmart’s mission in delivering customers products at the lowest prices. This low price strategy plays a marketing role that caters to customers who seek the lowest prices and with grocery stores that provide great deals (Brown, 2017). Walmart’s low cost business model is protected by its powerful supply and distribution chains throughout the world. Customers can expect the same cost efficient style in every Walmart store worldwide.

Today’s highly competitive business world forces companies to create different tactics and relatively rely on multiple pricing strategies to conduct business.

In order to make a profit, a business should ensure that its products are priced above their

Price has always been the key strategy in Wal-Mart’s marketing strategy. The success of Wal-Mart’s low price philosophy and marketing campaigns has been instrumental to the company’s success in the past half century. It is clear that from Sam Walton’s first store in Bentonville, Arkansas in 1950 to the 6200 stores worldwide as of 2006, Wal-Mart has utilized the price strategy of the marketing mix to become one of the most successful companies in

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)

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).