Like many new items on the market prices will be a

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in the market. Like many new items on the market, prices will be a little higher than expected, at first, then after gauging how well it is doing; we can adjust the price as needed to suit customer needs. When comparing the new product to existing ones, mainly in terms of price, we can see that if we started with a set size for the product, like 24 ounces, which would be divided by the three condiments within the product. When looking at other comparable products prices, they average between $2 and as high as $4, depending on the brand and type. Since our product offers multiple items within one tube, we can set a higher price, like $6-8 price range. Depending on the actual cost of this product to be made and shipped to the places the product will be sold, we will be able to set up a type of discount for promotional reasons to draw in an initial crowd of customers. As the best set up for our product is a status quo oriented objective. This way, we can focus on meeting up to competitor’s standards and find ways to increase sales in the market after we fully understand our product and how people in the market are going to respond to this new product. If the product appears as if it is becoming stable in the market, with either matching competitors or having none at all, it can prevent us from “rocking the financial boat”. To match up with competitors, this product will need a way to catch the people’s attention. A promotional coupon attached to a current product for a discount off our new product is a good area to look into. This strategy will also be depended on what its product life cycle will be. How long does it
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last in the market, its ability to live up to other products on the market, and does it last long enough to make a “mark” in the consumer life style. 1.a. Place 1.a.1) Channels of distribution - manufacturer, wholesaler, retailer 1.a.2) Product location availability 1.a.3) Physical distribution/location of facilities/modes of transportation 1.a.4) Cost 1.a.4.a) Production 1.a.4.b) Distribution 1.a.4.c) Overhead 1.a.4.d) Sales 1.a.4.e) Marketing 1.a.5) Markup 1.a.6) Suggested selling price 1.a.7) Profit margin 1.a.8) Price and quality relationship - perceived value 1.b. Promotion 1.b.1) Personal selling 1.b.2) Advertising 1.b.2.a) Direct mail
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1.b.2.b) Internet 1.b.2.c) Telemarketing 1.b.2.d) Television 1.b.2.e) Radio 1.b.2.f) Others 1.b.3) Sales promotion - sale prices, discounts, coupons, contests, sweepstakes, tradeshows, etc. 1.b.4) Public relations 1.b.5) Web site 2. Budget 3. Control/monitor 3.a. Feedback mechanism to monitor progress 3.b. Evaluation process 3.c. Performance objectives (quantifiable elements) 3.c.1) Profit margin 3.c.2) Market share 3.c.3) Promotional effectiveness 3.c.4) Market penetration
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  • Spring '12
  • ALL
  • Marketing, Henry John Heinz, H.J. Heinz

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