To ensure that the number of customers is controlled, the restaurant will charge high prices for their products while ensuring that the quality of food and other services provided are great. The statement of the restaurant should be to offer high quality food to the target market by ensuring emphasis on customized / personalized services. By adhering to the statement, the restaurant will aim at offering good food to the customers and at the same time be driven by the changes in the market (Milligan, 2012). This will ensure that the customers’ needs are met in a timely manner with customer considered king in the business operations. At the same time, offering of quality food and drinks will make the business operate within the legal requirements and cater for the interests of their stakeholders (Gupta, 2009). Because of this, the business will remain socially responsible and reduce costs that are associated with litigation charges. Most cases involving restaurants are based on tortuous actions or criminal proceedings if customers get injured or incur losses because of consuming food or having injuries in the restaurants. If the statement guiding the operations of the restaurant is maintenance of quality, the cases of such litigations will be minimized hence reducing costs. This statement would simultaneously cause customer satisfaction and loyalty. Every retailer in conducting business has the objective of maximizing returns ion the investment. Pricing is the only marketing mix element that generates cash to the business hence its importance. However, settling on the pricing strategy to use may not be an easy task to businesses. There are various pricing strategies including cost plus margin pricing, competitive pricing, psychological pricing, multiple pricing, discount pricing, and prestige pricing (Nagle Hogan & Zale, 2011). Any business that considers profit key however must thus consider the cost of production and ensure that the prices are above all the total costs and other overheads used in production. For the case of the upscale pricing, there is need for exclusion and uniqueness. The kinds of customers who are expected to be served in the restaurants are those of high class and will be interested in high quality services. They will thus be less sensitive to changes in the prices since they are also capable of paying even where charges are very high. Prestige pricing will therefore be the best pricing strategy to adopt in the restaurant (Nagle Hogan & Zale, 2011). Prestige pricing is one way that will ensure that the prices charged are above the costs and therefore make the business make huge profits to justify its operations and expansion of their services. In addition, the customers of upscale restaurant are those who need a feeling of being very important and non-ordinary. This makes them associate the high price with very high quality ad uniqueness. They will therefore be more comfortable with paying high prices than just the normal prices as a cost to the exclusive nature of their environment. In an upscale restaurant, highly qualified staffs who also expect to be paid highly normally prepare the food. The hotel attendants must be people with great skills and knowledge whose services are compensated very highly. In addition, the furniture, jewelers, and other beautification products to make the environment look prestigious make the customers overlook the
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Pricing Strategy Date Before settling on the form of business to pursue, businesses should determine the target market, mission, and the vision. Through doing this, the business gets to have clear roadmap and know the characteristics of their customers…
Apples pricing strategy Without a doubt, Apple is premium brand that continues to dominate in its competitive market. With innovative products such the Iphone, Macbook and the IPAD, a clever pricing strategy is essential for its success. It can be safely sad that no company is recession proof.
This research will have to analyze the wants and needs of the customers to facilitate penetration as a pricing strategy. According to Armstrong and Kotler (2008), market penetration is a strategy used by companies that are growing. The main reasons as to why the company in the question chooses market penetration are that this strategy increases sales and reduces the risks involved in the new market.
It has been said that while establishing pricing, three things can happen: firstly, to overprice the product and lose a sale that might have resulted profitable; secondly, underprice and make an unprofitable sale; and thirdly, price accordingly and make both sale and profit at the same time.
Furthermore, River Side Cafe is the first cafe within its locality to embed the rich Mexican culture in its business practices. Apart from attracting immigrant Latinos living far away from home to come and have a test of their home made brew, the cafe also manages to attract both old and new lovers of the drink who want to try out the Mexican style of brewing beverages.
It also talked about the different types of strategies that a company can take to try to plan for these future events, and help price their product to the point where they can make the most money and profitability out of their product. Of these strategies the article mentions proactivity and competitiveness, both two important factors that we use in discussions about marketing.
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.
Changes in price can be made must faster than changes in any other marketing mix variable
A company evaluates mainly the cost and the demand .for the product before setting up the price. However there are various other factors that need to be looked into while setting up the price.
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,
to operate between Dover, England and Calais, France, the main factor that served as the restraining force was concern for national security and cost issues. It was assumed that building a transport network below English Channel would be a matter of foul play because the
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