Doncouse_Jeremy_Week5

Doncouse_Jeremy_Week - Jeremy Doncouse MGMT303 Week 5 Develop a price production and distribution strategy for your product/service Explain how

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

View Full Document Right Arrow Icon
Jeremy Doncouse MGMT303 Week 5 May 24, 2009 Develop a price, production, and distribution strategy for your product/service. Explain how this approach best positions your company in the marketplace. A price strategy considers such factors as market strategy, market mix, demand curve, costs, environmental factors, price objectives, and determining pricing (Pricing Strategy, 2007). My market strategy is to target both genders and all ages who are either beginning pianists or intermediate pianists in the Pocatello, ID and surrounding areas. Because playing the piano is a luxury its demand is more elastic. Elastic demand means that the market is more sensitive to price increases because a luxury can be foregone at anytime. Costs that need to be considered are sheet music, insurance, equipment such as a blackboard or marker board, ink for the printer/scanner/copier, the income I am foregoing by not working elsewhere, increased costs of utilities when using my home, and various other minor expenses. Environmental factors would need to be researched. Environmental factors to consider are the prices of various other private teachers, the cost of attending class piano at Idaho State University, and lower-level school music programs. Pricing objectives would be, of course, to maximize profit, revenue, quantity, profit margin, and cost recovery. I could accomplish maximization by tracking revenue and costs. Quantity can be maximized by getting the most number of students in a week as
Background image of page 1

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

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

This note was uploaded on 03/08/2011 for the course MGMT 303 taught by Professor Unknown during the Spring '09 term at Mountain State.

Page1 / 3

Doncouse_Jeremy_Week - Jeremy Doncouse MGMT303 Week 5 Develop a price production and distribution strategy for your product/service Explain how

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online