{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

MGM 13 - Today Key questions for today Once a company has...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Marketing III Tuesday, October 28, 2008 MGM 101 - Introduction to Management Functions Key questions for today: Once a company has decided on the “right” product/ service to satisfy their target customer, how do they decide on the “right” price? What options are available to a business when it comes to the distribution (“place”) for their goods? What are the most appropriate choices? How do companies effectively promote their products to the target customer, particularly as the “marketplace” becomes more crowded? How and why do marketers involved throughout the marketing process use testing as a key tool? Today Pricing judgments by companies are critical… Pricing goals: Usually at a minimum, breaking even Achieving a target profit level (measured by profits: sales, profit per employee or even absolute profitability), or maximizing return on investment – Building customer traffic i.e. “loss leader” items in a grocery store – Buying market share – Creating a desired image in the marketplace » “Crazy Low Prices”… or a high-status reputation from premium priced products Pricing Strategies: Market entry Pricing for new products requires careful judgments about customer and competitor responses , and a company’s strategies for the future… What price, for this bike? “Skimming” Strategy “Penetration” Strategy High Price Low Price What is the long term plan for the product? How will we increase prices later? What are the risks involved in pricing? By pricing “too high”: Reduced sales Higher profit per unit sold, but too much unsold stock which reduces overall profitability Achieving a reputation for overcharging with customers – even if a more reasonable price is offered later, reputation may be damaged By pricing “too low” (relative to the market): » Demand might be too high, sell out of stock quickly »
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern