The Final Subsection Of Market Is The Business Climate

Determine and discuss a pricing strategy (penetration or skimming). Determine and discuss pricing tactics (product line pricing, value pricing, differential pricing, or competing against private brands) to be used for your product. Identify any legal and ethical issues related to the pricing tactics. Prepare a marketing distribution channel analysis identifying the wholesaler, distributor, and retailer relationships. Discuss how the distribution strategy fits the product/service, target market, and overall marketing objectives for the company.

Companies can choose many ways to set prices, skimming price strategy where a company sets a higher price than normal and a penetrating price where low initial price is set. “Pricing

The price comes from how much the product should sell for. In considering prices, the organization should consider the "product, customers, competitiveness, and quality."(Purdue, 2007)

Pricing your products is actually one of the hardest decisions for a new business owner to make. Make the prices too high and no one will want to buy. Make the prices too low and you can't make a profit. Not knowing how to price products properly is a common challenge for new business owner. And it is one that can make or break a company.

First of all, penetration pricing is the major determinant of the price and that is employed when the product managers have to give most of the value to the customers and keeps a small margin. Chatime decided use penetration pricing where set a lower price of milk tea than the eventual market price to attract

When trying to determine the correct price, a number of factors must be considered: the market and its segments, the size of each segment, the ability to reach each segment, what distribution channels to target, whether to vary price by segment, the usefulness of promotional offerings, and whether the goal is to skim or penetrate each market.

1,2- The first two questions will be gone through together in order to avoid confusion. Pricing is one of the most important elements to launch a product on the market. Mainly, because it is the only element, together with the marketing mix, that produces revenues. It is fundamental to set the right strategy in deciding and setting the price of a certain product to be sure that is fully understood and appreciated by customers in all its aspects and characteristics. A suggestion to rightly start the pricing strategy would be to follow a value based strategy, in order to understand what mostly consumers want and what price they would like to spend for that type of quality. It is the reverse process of the

AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: 1. Explain the offering concept and offering mix portfolio. 2. Describe how the marketing manager modifies the offering mix. 3. Identify and describe the stages in the new-offering development process. 4. Identify and describe the stages in the product life cycle.

The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.

I am going to explain the four types of consumer offerings and how they differ from one another. First, what is a consumer offering? A consumer offering can be a product (tangible good), an intangible service, or a combination of both, that is offered to the public (customers and potential customers) at a price. There are four general categories of consumer offerings, and they are, convenience offerings, shopping offerings, specialty offerings, and unsought offerings. These categories of offerings are not distinguished by the offering itself, but by the way that the consumer wants to purchase the offering. Therefore, an offering might fall into a different category for one

The first consideration is to define the product: is it a luxury product, which is promoted partially upon its image of exclusivity, or is the item a product that is promoted primarily on value? The price of the item will eventually have to enable the company to be 'in the black,' so even if the product is priced low to start, there must be some advance planning of what is a feasible final, target price for the item. For example, if the input goods of the product are relatively high, compared with competitors (such as selling organic beef burgers, versus those sold with cheaper meat), assuming cost leadership as a pricing strategy throughout the product's lifecycle would not be advised. However, initial penetration pricing can be used to encourage consumers to try the product: "Penetration pricing...skimming pricing by entering the market with a tangible product or service at a low price in order to appeal to the mass-market immediately" (7.4 Pricing policies, n.d, Advanced Diploma in Logistics and Management). In some instances, such as the development of a new form of technology or a drug, to recoup the initial outlay of R&D costs, an opposite strategy is deployed: "A skimming price policy is the use of a high initial price, often three to four times the factory cost," with the knowledge that the price

Do you want to be perceived as a discount outlet? If this is the case, you will want to keep your prices low. On the other hand, If you want to be perceived as a limited edition or luxury product or service, you will command a higher price structure. People really do equate price with quality. Other criteria for pricing would be to estimate what the demand will be for your product or service. The price will normally affect the demand curve. The higher the price, the less the demand in most cases for the product or service. In order to get the best possible price, a marketer might do some test marketing in several similar markets using a different price for each. Generally, the best price will be the one that provides the maximum amount of profit to the company. Example: 100 widgets for $1.00 get 78 sales. 100 widgets for $2.00 get 49 sales. 100 widgets for $3.00 get 14 sales. The middle price would constitute the biggest profit for the company. The first example provides 78 dollars in revenue, the second 98, and the third 42. The $2.00 price would be the most appropriate. Another consideration concerning pricing involves the costs associated with the manufacture and distribution of the product or service. All costs fixed or variable must be considered in pricing the product to maximize profit. The main consideration for any business is to maximize profit. Profit margins can vary drastically from industry to industry, but no matter the margin, a profit must be

In today's highly competitive market, businesses must be aware of the environment in which they operate and the external factors that influence them. These factors can affect the main internal factors of the business and its objectives or marketing strategies.

There are many ways in which the price of a product can be determined. The following are the foremost strategies that businesses are likely to use.

The process in which organizations determine what they will obtain in exchange for their products is called pricing. Some significant factors for pricing include Market conditions, competition, market place, cost of production and product quality.