Summary
Summary mne3701 assessment 04
- Course
- Institution
THE DODCUMENT CONTAINTS QUESTIONS AND ANSWERS FOR MNE3701 ASSIGNMENT 04
[Show more]
Seller
Follow
murandatee
Reviews received
Content preview
Question 1The essay seeks to critically discuss how to apply a pricing system in my business. The
primary factors that determine whether a corporation is profitable are its pricing policies.
In e-commerce, where price is frequently the primary determinant of purchase
decisions, the effective use of the methods is essential.
Pricing strategy is important because it determines how value is delivered in a business.
One most important thing is that one cannot apply the pricing strategy in isolation to
other broader marketing strategies.
There is need to determine the pricing strategy before advertising products to
consumers. As a business person I will choose my strategy from any of the ones
explained below. The essay will explain all the pricing strategy and one will be chosen,
and the reasons and how to apply it will be given thereafter.
Push selling strategy:
The corporation uses this tactic to encourage customers to place orders for the
company's items. In essence, it compels customers to purchase things during sales and
discounts. This strategy encourages customers to make purchases. In order to generate
customer demand for a product through discounts and other offers, pushing strategy
employs a company's sales team and trade marketing efforts. The producer pushes the
wholesaler, who in turn presents it to the retailers and retailers sell it to the customers in
his promotion effort.
Pull selling technique
There is a lot of "pull" marketing used to draw in customers. Its success is dependent on
significant advertising expenditures that can persuade clients through persuasive
marketing campaigns. As a result, customers are encouraged to demand retailers,
retailers demand wholesalers, and wholesalers demand producers.
Push and Pull pricing strategies can be applied in order to establish the business in the
industry.
Through market penetration strategy, my business should employ the push-selling
technique by providing discounts on a variety of goods, such as casual shoes that can
be worn only temporarily for variety. Additionally, the company should use Facebook,
Twitter, direct marketing, sales promotion, and Blippar to reach customers' preferences
in order to promote the product. This is because, according to studies, young people
prefer using these media outlets over TV and newspapers.
Additionally, seasonal presentation via seminars and demonstrations via modeling
sessions will assist us in boosting its selling and customer appeal.
Producers evaluate consumer behavior and approach to buy decisions through
customer adoption. Some consumers give off the impression of being innovators
, because they always want to set the trend and lead the pack. Then there are certain
customers who demonstrate themselves to be early adopters by reacting quickly to a
new product that has just entered the market. Then there are those who accept the
products early, late, and laggards who learn from others' experience.
However, my company needs to implement a strategy that may effectively appeal to
either an early or a late majority. Blippar can be used as an example of an effective
instrumental advertisement since its subliminal nature raises customers' awareness
from the cognitive to the conative stages. Additionally, this form of advertising
guarantees the lowest outlays for the highest return.
Competition-based pricing is the pricing of goods and services that is based on what the
competitors are charging. The term can be used in a broad sense to include any
competitive strategy, including product design and marketing decisions, such as
targeting niches where competition is low or creating a new product designed to
compete with specific competitors.
How to build a competitor-based pricing strategy
A strong competitor-based pricing strategy is built on research. When you understand
how the top competitors in your market are pricing their products and how that pricing
might impact customers’ expectations, you have a foundation for setting the new
product’s or service’s rates.
Identify the competitors in the market
The first step to competitor-based pricing is to figure out who the competitors are. Which
companies are selling similar products or services? This is fairly standard market
research you should be performing already.
Then, group them by specific characteristics, such as tenure and market share. Pick out
the companies that most closely match your own brand’s profile these are the top
competitors.
Research their pricing and positioning strategies
Once you know the competitors that make up your market, perform a competitive
pricing analysis to dig into their pricing models and positioning strategies to build a map
of current trends. Make sure to look at not only their pricing but also the way it is
packaged, the types of tiers they use, and the features they differentiate on. This
research will help to understand what types of pricing and positioning customers expect
in the market, so to can choose the best price for the product or service.
Average the price of all competitors
Creating a pricing map will help you understand what all of the different competitors are
doing individually, but it’s also important to look at all of this pricing data in aggregate as
well.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller murandatee. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.22. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53022 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now