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Doncouse_Jeremy_Week5 - Jeremy Doncouse MGMT303 Week 5...

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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
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