MARKETING; CONNECT ACCESS
7th Edition
ISBN: 9781260985788
Author: Grewal
Publisher: MCG
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Question
Chapter 15, Problem 10MA
Summary Introduction
To discuss: Opinion of Person X on the given situation.
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You have taken a summer job in the windows and doors department of a large home improvement store. During sales training, you learn about the products, how to best address customers’ needs, and how to sell customers the best product to fit their needs regardless of price point. One day your manager informs you that you are to recommend Smith Windows to every window customer. Smith Windows are more expensive and don’t really provide superior benefit except in limited circumstances. The manager is insistent that you recommend Smith. Not knowing what else to do, you recommend Smith Windows tocustomers who would have been better served by lower-cost windows.The manager rewards you with a sales award. Later the manager tellsyou that he received an all-expenses-paid cruise for his family fromSmith Windows. What, if anything, should you do with this information?
Describe what you are selling (1 item only):
What is the price you will sell at to sustomer:
How will you explain to potential customers WHY they should buy your product?
If your total costs to run the company is $5,000 per month, how many do you have to sell each month
to cover your costs? Show your calculation!
Do you think this is a realistic number to achieve each month? Explain your answer.
In case sales go slower than expected, come up with a volume discount offer for customers and
describe how it will work in the box below:
(for example if you buy 5 items instead of 1, you will give customer a 10% discount).
Does "value" mean the same thing as "low price"? How do these concepts differ?
Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value?
Why might the strategy for setting a product's price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example of each.
(4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.
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