StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

A Vital Part of Effective Marketing Strategies - Assignment Example

Cite this document
Summary
In the paper “A Vital Part of Effective Marketing Strategies” the author discusses pricing as a vital part of effective marketing strategies that ensure that a maximum number of sales are achieved every day. Price elasticity of demand (PED) is the sensitivity of quantity demanded…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
A Vital Part of Effective Marketing Strategies
Read Text Preview

Extract of sample "A Vital Part of Effective Marketing Strategies"

As the new products are set to the market for commercialization it would be recommended to utilize a pricing strategy that maximizes the current profits. The company should estimate the demand and costs associated with alternative prices and choose the price that produces maximum current profits, cash flow, or rate of return on investment. In emphasizing current performance the company may sacrifice long-run performance by ignoring the effects of other marketing-mix variables, competitors’ reactions, and legal constraints on price.

However as the product matures in the market and if the company is pursuing to keep the product in the market, it would be recommended to utilize the market-skimming pricing strategy as a sufficient number of customers would have a high current demand and high price communicates the image of a superior product. Besides the high initial price (the cost to market) will tend to discourage the competitors to compete in the same product quality levels. A guide to the pricing strategy can be derived from the following table.

HighMediumLowHigh1.Premium 2.High-value3. Super-valueMedium4. Overcharging5. Medium Value6.Good valueLow7. Rip-off8. False economy9.Economy3. What pricing tactics would you recommend? Justify your recommendations. Pricing tactics will depend on several factors (Kotler, p.472) e.g.Company objectives such as maintaining brand image, maximization of revenue, maximizing profits, market coverage and expanding current market share, expanding to new markets Market segmentation and product positioning to identified target marketsThe marketing mix deployed by the company for the target market/sCompetitor marketing mix strategiesAvailability and demand for substitute productsAccordingly, pricing tactic can be adapted from the following tableTable 2 marketing Mix Alternatives Source: (P.

Kotler, p.496)Strategic Option/pricing tacticReasoning ConsequencesMaintain price and perceived quality. Engage in Selective customer pruningThe firm has higher customer loyalty. It is willing to lose poor customers to competitorsSmaller market share. Lowered profitability.Raise the price and perceived qualityRaise the price to cover rising costs. Improve quality to justify higher pricesSmaller market share maintained profitability.Maintain price and raise the perceived qualityIt is cheaper to maintain price and raise the perceived qualitySmaller market share.

The short-term decline in profits. Long-term increase in profitsCut Price partly and raise the perceived qualityMust give customers some price reduction but stress higher value of the offerMaintain market share. The short-term decline in profits. Long-term maintained profits.Cut-price fully and maintain perceived qualityDiscipline and discourage priceMaintained market share. The short-term decline in profitsCut-price fully and reduce the perceived qualityDiscipline and discourage price competition and maintain a profit marginMaintain market share.

Maintained margin. Reduced long-term profitsMaintain price and reduce the perceived qualityCut marketing exposure to combat rising costsSmaller market share. Maintained margin, reduced long-term profitsIntroduce an economy modelGive the market what it wantsSome cannibalization but higher total volume

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(A Vital Part of Effective Marketing Strategies Essay Example | Topics and Well Written Essays - 500 words, n.d.)
A Vital Part of Effective Marketing Strategies Essay Example | Topics and Well Written Essays - 500 words. https://studentshare.org/marketing/1576092-pricing-the-product
(A Vital Part of Effective Marketing Strategies Essay Example | Topics and Well Written Essays - 500 Words)
A Vital Part of Effective Marketing Strategies Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/marketing/1576092-pricing-the-product.
“A Vital Part of Effective Marketing Strategies Essay Example | Topics and Well Written Essays - 500 Words”. https://studentshare.org/marketing/1576092-pricing-the-product.
  • Cited: 0 times

CHECK THESE SAMPLES OF A Vital Part of Effective Marketing Strategies

Direct and Marketing Communication

Direct and marketing Communication Table of Contents Table of Contents 2 Introduction 3 Dynamic Customer Relationship Management (DCRM) Theory 4 Creation and Implementation of marketing System 5 Media Planning 6 marketing Communication Planning 9 9 Conclusion 12 Works Cited 13 Bibliography 16 Introduction Anthony Menswear is a small apparel organization situated in Cambridge of United Kingdom.... Anthony Menswear uses business to consumer marketing through several activities such as internet marketing, advertising, and public relations and maintaining brand reputation....
7 Pages (1750 words) Essay

E-Commerce Cyber Marketing Strategies

E-commerce has led to the revolution of traditional marketing concepts, initiating strategies to enhance marketing strategies referred to as network marketing (Miletsky, 2000).... This paper seeks to discuss and analyze four main E-commerce cyber marketing strategies: viral marketing, online advertising, permission electronic mail marketing, and search engine management and optimization.... In marketing strategies, the most important factor to consider is to shorten the distance between consumption and production as well as reduce the lengthy circulation of commodities through numerous links....
11 Pages (2750 words) Essay

The Dark Knight Rises. Reasons Behind Movies Commercial Success

Analysis of the commercial factors underlying The Dark Knight Rises' success indicates that more than effective marketing, it was the legacy of the movie that gave it a grand opening despite various daunting events like the shooting incident.... Another important part of this marketing campaign was movie's viral marketing strategy that was highly complex yet interesting enough to engage millions... Despite all these expenditures on marketing, sometimes the persona or perception of the movie also plays an essential role in attracting hoards of audiences....
4 Pages (1000 words) Essay

Master of Science Strategic Marketing

Thus, an effective marketing strategy becomes intrinsic to the management strategy that significantly impacts the overall business performance outcome.... marketing has evolved from being about sales and advertising to becoming seen as a strategic panacea applicable to all markets and sectors with a set of techniques and tools designed to ensure a customer-centric focus….... But the fast changing socio-economic dynamics have created a fiercely competitive business environment, necessitating changes in the role and techniques of traditional marketing to encompass broader parameters of business performance....
4 Pages (1000 words) Essay

Marketing Plan Project: Coke Vita

The assignment "marketing Plan Project: Coke Vita" talks about the new product idea, Coke Vita, that fits within Coca-Cola's purpose.... The company has a three-part mission statement that declares the company's purpose.... This assignment talks about the new product idea, Coke Vita, that fits within Coca-Cola's purpose....
7 Pages (1750 words) Assignment

The Most Popular Marketing Strategies and Tools

The paper “The Most Popular marketing strategies and Tools” illuminates both traditional and new marketing policies: the Four Ps, social networking strategy, mobile marketing, guerrilla marketing which involves the promotions dependent on time, energy and imagination of the company's marketers.... To increase customer base companies use different kinds of marketing strategies.... The present paper seeks to describe and critically analyze some of the newly invented marketing strategies, such as viral, social marketing, guerilla marketing, and mobile marketing, and along with these, the paper will also make an attempt to compare and contrast these strategies to traditional marketing strategy....
13 Pages (3250 words) Assignment

Social Marketing Plan for Coca-Cola

Social media is therefore a vital marketing and public relations tool in global business practices (Thevenot, 2007, p.... In these two promotion strategies, the two teams were expected to use social media platforms such as YouTube Face-book and Twitter to identify what makes people happy in the world and to document the occurrences of the trip.... Through adequate study on the impact of social media in marketing strategy, the company has formed its own guideline for controlling the interaction between the company and its customers....
7 Pages (1750 words) Essay

Principles of Marketing

hellip; Commercial companies must always have effective marketing teams capable of carrying out extensive market researches and analyses with the view of establishing substantial market shares for a product or service.... Marketers use various effective marketing tools and strategies in achieving profitability and longevity for their products and services.... The definition implies that marketing is a vital function.... Launching a new product is more difficult and therefore requires the marketers to employ such strategies systematically and with both caution and information about the market thereby ensuring that every activity enhances the profitability of either the product or service....
6 Pages (1500 words) Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us