Assignment 5 Price

Assignment 5 Price - who buys less than 250 units. 30% off...

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iopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvb Assignment 5 Price Bob Buckman 3/9/2009 Mgmt 324 Marketing Management Kasia Firlej
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Allround’s competitive strategy is geared to the cold market because it is the most profitable. Our main competitors are B&B health care with their product Besthelp, Driscol Corp. who produces Dryup and finally Ethik Inc. who makes Extra. Allround is the most expensive At $5.29 followed by Dryup at $5.09 next is Besthelp at 4.89 and finally the cheapest is Extra at $4.49. Luckily for us price is not the main concern for those who are ill. The main concern is effectiveness and normally the cheap brands are not as effective. However price does hold the second or third place in the consumer’s decision criteria. The important thing is that is not first. we offer volume discounts to our distributor as incentives to stock our product. 25% off to any distributor
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Unformatted text preview: who buys less than 250 units. 30% off to distributors buying between 250-2500 units and finally 35%for 2500+units. I forgot about wholesalers who receive 40% discounts. Grocery stores take advantage of the wholesale discounts. Chain drugstores normally reach the 30% discount bracket. About our price, we have the most expensive product in the cold market however we learned that that is not always the main concern in the consumers mind. Price could be below effectiveness like it is in this case or it could be below value in the consumers decision criteria. For example the difference between book value and market value. I believe Allround brings value to the AllStar corporation and consumers may buy future AllStar products because it holds the AllStar name....
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This note was uploaded on 10/21/2009 for the course MGMT 324 taught by Professor Firlej during the Spring '09 term at Calumet College.

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Assignment 5 Price - who buys less than 250 units. 30% off...

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