Assume the role of the marketing consultant. Advise 40 Foods Distributors regarding businessto-business (B2B) marketing by addressing the following: QUESTION 1 (6 marks) If 40 Foods
Distributors is planning to increase prices for Miss K Ice Cream. Advice the company about the
pricing objective...
This report serves to provide critical insights for 40 Foods Distributors as they strategize to
enhance their B2B marketing efforts, particularly focusing on pricing objectives for a potential
price increase on Miss K Ice Cream, exploring B2B communication platforms, understanding the
product positioning process, and analyzing the product life cycle stages. This compr ehensive
analysis is essential to strengthen 40 Foods Distributors' market presence and ensure alignment
with profit and customer satisfaction goals.
QUESTION 1
Pricing Objectives for Miss K Ice Cream
Profit-Oriented Pricing Objectives
Profit-oriented pricing focuses on maximizing financial returns. Objectives under this approach
include maximizing profits or achieving a target return on investment (ROI). These objectives
involve setting prices that either achieve a specific profit margin or optimize profits based on
cost and demand analysis (Kotler & Armstrong, 2022). This strategy benefits 40 Foods
Distributors by ensuring profitability, especially during rising costs, enabling sustained
reinvestment in business growth.
Status Quo Pricing Objectives
Status quo pricing objectives emphasize maintaining stable prices relative to competitors,
aiming to avoid price wars and market share disruption. This objective is particularly effective in
highly competitive markets, where price fluctuations could trigger customer defection or
intense competitive responses. By maintaining the status quo, 40 Foods Distributors can ensure
customer loyalty while preventing potential loss of market share.
Practical Application for 40 Foods Distributors
For 40 Foods Distributors, a profit-oriented objective appears most suitable given the goal to
increase prices for Miss K Ice Cream. This approach will allow them to strategically raise prices
to enhance profit margins in response to market demand and cost pressures. By focusing on
profit maximization rather than status quo maintenance, the company can leverage its
product’s unique value while achieving higher returns (Study Guide, Learning Unit 7). This
strategic focus supports long-term financial sustainability, which is essential for maintaining a
competitive edge.
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