The Strategy and Tactics of Pricing - Case Study Example
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Extract of sample The Strategy and Tactics of Pricing
This should be made possible by ensuring that the prices offered by all the dealers are equal through auditing process (Kourdi, 2009). The company needs to make a thorough auditing of all the dealers to ensure that none of them sells the product either above or below the recommended company price of $12, 000. Customers must be made to understand that they can only get good after-sale support services from the local dealers and not the distant dealers. The dealers may be connected to a digital sale receipt program that allows them to enter sales records and prices offered on the product. The same information should be reflected on the receipt given to the customer (Frasco, 1991). The company’s technical team must also follow up with the program to ensure that fabrication of data is made impossible. Steve Marsh can adopt rebranding of the PSX-360 product. The rebranding of the commodity entails a number of aspects. As it can be revealed that the external dealers are the main cause of deteriorating sales to Steve’s organization. The audio industry in which Pro-Audio operates seems to be taking the structure of a monopolistic competition where there are several numbers of sellers who are competing on same commodity or service. In this case, there are both first and second movers in quantity and price. All dealers have been identified to enjoy benefits of second movers (Gopalakrishnan, 2007). They have adopted high discounting techniques that have led to deteriorating sales in Pro-Audio. Consequently, the external dealers have led to the deterioration of the PSX-360 image within the market. Product rebranding entails changing on the products attributes such as color, name, adding aspects of the PSX-360 functionality, logo, advertisement themes and strategy that its marketers use in selling the product (Gopalakrishnan, 2007).
A writer of the paper "The Strategy and Tactics of Pricing" outlines that the company needs to make a thorough auditing of all the dealers to ensure that none of them sells the product either above or below the recommended company price of $12, 000. …
In terms of modern globalized world, there are many businesses, which function without any respect paid to the interests and concerns of the poor or underprivileged people. Fingerhut Company exploited the poor people and developed its advertising campaign, basing on fraudulent ads.
Firms must have a marketing mix that will enable the product to be priced so as maximize profit. Jerome postulated the four classification a popularly known as marketing mix that is; product, promotion, place, and price. In this mix, pricing is a key factor for any product offered by a firm so as to generate a high turnover.
We can also not price it too high otherwise it would go out of the reach of the local market. Pricing a product too high or too low is always a disaster; we need find a balance between the two. The main objective of pricing is to cover the total costs while earning profits.
Moreover, it influences other elements of marketing mix like features of products, decisions channels and brand promotion. The discussion will outline how to determine pricing strategy, what drives the strategy and how pricing strategy influence product equity Discussion While there is no chosen criterion of determining pricing strategy, some sequence steps are commonly used in new products pricing strategy.
Only the freshest products make it to our kitchen- we do not believe in selling anything below our premium standards. Question 2 Organizations usually have a choice between cost-centric, demand-centric and competition oriented pricing strategy (Levy & Weitz, 2012).
Every organization should have own strategic goals for pricing the products - like prices will never be quoted in such a way that the revenues from the product will be less than 10% above the break even pertaining to the business of that product OR under any circumstances no product shall be allowed to incur losses to the extent that the overall revenues of all products put together will be less than 20% above the break even, etc.
Given current economic conditions, companies are under increasing pressure to sustain profitable operations. Traditional approaches to improving profitability managing costs are necessary, but are increasingly limited. An alternative approach is to address revenue growth as an additional lever to improving profitability.
The new marketing plan involves a concerted effort for the marketing of the new line of personal computers and laptops that the company has manufactured. These will target home based customers and in the next year’s plan,
These reasons also form part of the justification why the Blue Team Company should consider employing a versatile pricing strategy for their new product in order to maximize return on investment, increase product
Concerning locale, in blustery areas dealers can offer things like overcoats, umbrellas and gumboots. In hot areas, one can offer summer attire. A little business item store may target just clients from
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