...#3 Pricing Strategy and Channel Distribution Marketing Management – MKT 500 February 15, 2012 Pricing Strategy and Channel Distribution Determine and discuss a pricing strategy (Skimming and Penetration). One of the four major elements of the marketing mix is price. Pricing is very important strategic element. The pricing strategies impinge on featuring products, channel decisions, and promotions. This strategy helps marketers set prices. (Pride, Hughes, & Kapoor, 2011) There are many ways to price a product. Two commonly known pricing strategies are skimming and penetration. Lavishness Hair Studio is likely to use one or both of them over a calculated period of time. Price skimming involves charging the highest price possible for a short time where a new, innovative, or much-improved product is launched onto a market. The objective with skimming is to “skim the cream” off customers who are willing to pay more to have the product sooner. Prices are usually lowered once demand falls. Penetration pricing is the opposite; it involves the setting of lower, rather than higher price for a new product. The seller wants to discourage competitors from entering the market by building a large market share quickly. The plan is to raise prices as soon as the introductory offer is over (Pride, Hughes, & Kapoor, 2011). Lavishness Hair Studio will use price penetration during the initial opening phase of the business. Penetration pricing is the strategy of entering...
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...discuss a pricing strategy (Penetration or Skimming). Pricing is very important strategic element. The pricing strategies impinge on featuring products, channel decisions, and promotions. The researcher realizes there is no real determine pricing, following a life cycle for developing the pricing of Destini’s Closet product. First, develop market strategy – which the researcher evaluated and conducted a marketing analysis to identify the market segments, target market, SWOT analysis, and the market positioning. Second, marketing mix decisions – the researcher defined the product (Clothing), contacted manufactures for distribution, and decided promotional tactics. Now the researcher is focusing on the cost productions, price of substitute products, and prices offered by the competition. The researcher notices that competitors change their prices often. Case scenario, competitors are always looking for a competitive match, this can be an advantage and a disadvantage for the business. Competitors may strategize a different packaging of their product; this can be good for Destini’s Closet by reducing their price. It’s all up to the customer wants and needs. The demographic crowd the researcher is focusing on would rather price reduction then a new look to a product. What if production price are rising? If production price is rising it’s up to the Destini’s Closet to determine the price increase without turning the customers to their competitors Two commonly known pricing strategies...
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...Pricing Strategy and Channel Distribution Stacy Allen MKT 500 -Marketing Management Dr. Adina Scruggs February 12th, 2012 Penetration entails giving most of the value to the customer and keeping a small margin. The objective is to gain as much market share as possible. It is often used as part of an entry strategy for a new product and is particular useful for preventing completive entry. The opposite of penetration pricing is skimming. Skimming gives more of the cost-value cap to you than to the customer. This strategy is appropriate in a variety of situation. For example, if there is a strong price-perceived quality relationship and the value proposition includes a position of the product at the high end of the market, then this objective makes sense. Financial Objectives * Reach profitability by year two. * Reduce store overhead by 5% each year. * Have a double digit growth rate for the first few years. The product-line approach involves offering both a high-priced and a low-priced brand. For example, this is a classic strategy that Procter & Gamble use. Just for Women Shoes strategy would be running and work out sneakers at the premium level and everyday work pumps (black, navy, brown) at the low end. Value pricing is related to customer expectations: It gives more value than they expect for the price paid. Just for Women Shoes Differential pricing or competing against private brands is to reduce the price gap to the point where consumers...
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...PATIENT INFORMATION Date Last Name Date of Birth Address Home Phone Number Employer First Name Middle Initial Age Social Security Number City State Zip Other Phone Number Work Phone YES NO A. Are you pregnant? If yes, please stop and return to the front desk. B. Are you on ANY type of steroids (oral, inhaler, injections or creams)? Have you been on steroids within the past 3 weeks? C. Have you had an organ transplant? D. Have you had cancer? Are you in remission? E. Do you have any implanted electronic devices? YES YES YES YES YES YES NO NO NO NO NO NO Can we leave a message on your answering machine? YES NO May we contact you at work? YES NO May we give results at this address? YES NO Would you like to receive occasional informational notifications? If so please provide address: Email Authorization to release information to and relation. Your Primary Care Physician Is: Have you ever filed legal actions against a healthcare provider? YES NO EMERGENCY CONTACT INFORMATION Last Name First Name Phone Number(s): Nearest Relative/Friend Not Living With You: Phone Number(s): Middle Initial Above information will be used for verification and emergency purposes only. How Did You Hear About Laser Med Center? Patient Signature: _____ INITIAL CONSULTATION AND PATIENT HISTORY Circle any of the following which apply: - Arthritis - Compression Fracture - Diabetes - Kidney Failure/Dysfunction - Liver Failure/Dysfunction - High Blood Pressure - Irregular Heart Beat - Light Sensitivity...
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...o Discuss how households have changed over the past 20 years and the implications of these changes on the purchase of consumer goods. Over the past 20 years, the traditional household dynamic has drastically changed. In the early 1900’s families consisted of a husband, wife and children. Most people were married at a young age and were focused on family rather than their careers. In today’s society people are getting married later, households sometimes consist of two husbands or two wives and people are career focused. With modern technology allowing for households to have interactive programs, internet and even phones consumers are focused on speed. Consumers want things faster, cheaper and better. Manufacturers must now find better faster and better ways to reach consumers. With Social Media outlets such as Facebook and Twitter quickly taking over, manufactures have adapted a new way to reach consumers. o How would Procter & Gamble market shampoo to Young Transitionals differently than Start-up families? Proctor and Gamble can market shampoo to different segments of the population by taking to social media and adapting new marketing methods. Many manufactures have taken to sites such as Groupon and Living Social to market new products. In a turbulent market consumers tend to use coupons more and to seek specials. Groupon and Living Social provide a discount to consumers for trying a new product or service. Consumers pay twenty dollars and receive 40 dollars towards...
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...Title of Paper Your Name Course/Number Date Instructor Name (Doctoral students must include the following on the title page instead: title, author’s name, and institution name) Title of Paper ||AbstractThe company chosen and used for this paper is a mobile transport company that caters specifically to senior citizens. This particular paper will explain in detail domestic and global product branding strategy, optimum pricing strategy and a distribution channel analysis that identifies the wholesaler, distributor, and retailer relationships including e-Commerce. Discussions within the paper will also include the use of a push or pull strategy, a distribution channel analysis and supporting references.Domestic and Global BrandingA brand is the likeness, idea or image of a specific product or service that buyers connect with, by identifying the name, logo, slogan, or design of the entity that owns the idea or image. When the idea or image is marketed so that it is recognizable by more and more people, and identified with a certain service or product when there are many other companies offering the same service or product, it is then considered branding. Advertising professionals work on branding not only to build brand recognition, but also to build good reputations and a set of principles to which the company should strive to maintain or exceed. Branding is an important part of Internet commerce because it companies to build their reputations as well as expand...
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...Case 6 Pricing Case: Terry’s Miracle Paint Terry Chase is a car painter. He has been painting cars for 10 years. Last year, he made an amazing discovery. He mixed a clear paint that once heated would take on the color of the paint around it on the car. He has been experimenting with paints that change color for the last two years and this new paint he has developed will be a major innovation to the paint market for cars. As car paint weathers, it fades and car painters always have a problem matching the paints to older faded cars that are wrecked or scratched. Terry feels that his new paint will be most beneficial to people who want to touch up scratches to their cars and auto dealership that want to make quick repairs. The question that Terry needs to answer is how much to charge for his new touch up paint. He has decided to sell in a 4 fluid ounce tube with a brush included. It costs Terry $3.00 per tube for the first 1000. Terry knows that conventional touch up paint costs about $4.00/tube. However, his paint has much better qualities; consumers do not need to worry about matching color and his paint flows and seals better. However, when Terry asks the manager at AutoZone about his paint the manager said the consumers are very careful about what they put on their cars and many are reluctant to try new brands. The manager at Autozone said that his customers are quite price sensitive. Terry becomes confused about where he should sell the paint and what price...
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...Product, Pricing, and Channels Paper Davy Ferguson, Antoinette Gardner, Adrienne Howard, Nancy Rooke, Taivonti Savage MKT/421 May 12, 2015 Dr. Christopher Whitaker Product, Pricing, and Channels Paper Meeting the Needs of the Target Market Duende is an athletic apparel company focusing on the growing demand for fashionable, functional active wear. There is a large market for the products currently offered by Duende and consumers are looking for athletic apparel in new fabrics and bright colors which broadens the scope for even more products to join the Duende product line. Today, Duende offers products such as running shoes, backpacks, hats, sunglasses, socks, protective gear, fitness devices, and yoga apparel. Duende’s research and development group is constantly surveying the market to stay in touch with latest trends. Active wear is especially appealing to those who are interested in a healthier lifestyle. Duende’s offers a product line geared toward the gym-minded professional who is interested in clothing that is comfortable and also motivational. A pair of super cute leggings works for the gym and also transitions well into the after gym trip to the grocery store. Some of our customers will purchase our products to use as leisure wear. Our customers will wear our products because they feel good, look good, and make them feel good about themselves even if they do not plan to go to the gym today. Duende offers this functionality at an affordable price. ...
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...marketing plan. It provides a description of the pricing strategy that Toyota will use when establishing product prices. The report further gives a detailed explanation of two distribution channels that Toyota will use to supply products to customers. These channels include the dealership and retail channel. Toyota will also use a promotional strategy that will use various components of the marketing mix: Advertising, public relations, personal selling and sales promotions. The marketing implementation plan of Toyota covers various concepts, which include, structural issues and tactical marketing activities. The final part of the marketing plan is an evaluation and controls. It covers formal and informal controls, marketing implementation schedule and an explanation of a market audit. Pricing Strategy The pricing strategy that the Toyota company applies should fit the financial preferences of their target emerging markets such as the Asian countries and other potential international markets. The pricing objectives of the company will be: * To increase the profit margin by 50% in the next one 12 months * To increase sales volumes by 20% in the next two years Toyota will apply various pricing methods, in order to achieve the above pricing objectives. According to Shefer (2007), marketing managers use various pricing methods to achieve their pricing objectives. Besides using the price methods, they may also design innovative pricing methods that fit the needs of both the organization...
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...Product, Pricing, and Channels Paper Learning Team A - MKT/421 Professor Luis Product, Pricing, and Channels Paper The following paper discusses how the Grayl, a water filtration equipment manufacturer offers its personal water filtration device to a number of target markets such as those who are health conscientious, environmentally focused, outdoor enthusiast and travelers. The discussion covers a number of topics such as the product features and benefits, the phases of the product lifecycle, the packaging of the product, the pricing strategy, and the channels of distribution. Product Features and Benefits The Grayl is a water filtration cup that functions much like a French Press. Filtered, good tasting water is as convenient as ever with the Grayl. Simply fill the outer cup with water, press the inner cup in the outer cup, and in as little as 15 seconds the Grayl filters the water by isolating it in the inner cup. During the filtration, the Grayl removes, chemicals, metals, and most of the bacteria commonly found in unfiltered water. The Grayl thoroughly filters water using technology that features a triple-charged ion mesh that pulls germs and viruses out of the water with magnet-like force. It also features an anti-microbial agent that ensures freshness every time. Though convenient at home, school, or office, the Grayl will also eliminate worries about finding clean water when on-the-go for a number of reasons such as day-to-day mobility; outdoor and...
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... 1 Featha’s Closet, Top Quality Clothing and Accessories for Men, Women and Children Justin L. McKnight Marketing Management 500, Monday 6:00 Dr. McCue Strayer University FEATHA’S CLOSET 2 Domestic and Global Product Branding Strategy At Featha’s closet, our product and branding strategy will be used to help build brand awareness that’s sets us apart from the competitors. It will be used to remind current and prospective customers why they should purchase our products over the others and try to convince them to buy our products based on emotion. We would like consumers to think of our products as inexpensive with similar quality of our competitors. In order for us to give consumers a positive association with our brand we could conduct clothing drives and sponsor positive activities for inner city youth and other activities to reinforce our brand association with our target market which consist of single parent mothers and African American men. In addition to that we could create online blogs or customer feedback cards that would allow customers to give us their opinions which could be used to our advantage. Optimum Pricing Strategy This company’s optimum pricing has a mixture of low pricing and medium pricing characteristics. It penetrates the market through providing low prices to attract volume and some of the prices of the products are nearly predatory because they are low enough to discourage competitors. For example, the Air Jordan sneakers that inner...
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...products from manufacturers, then distribute them to consumers and other buyers. A channel of distribution includes the locations where sellers market their products to the final consumer. This could be a combination of institutions through which sellers deliver their product (i.e., wholesalers, retailers, agents). There are many marketing functions that are handled by these intermediaries, including buying, selling, sorting, financing, storage, and transportation. The conventional channels of distribution involve many methods of getting products to the final consumer. These methods may include distribution from the manufacturer directly to the consumer, distribution from the manufacturer to a retailer to the consumer, and several others. From a strategic point of view, the term "supply chain management" connotes a holistic, systems approach to viewing product distribution as an integral component of partnering with vendors, suppliers, and various intermediary marketers. When determining a channel of distribution plan for a company, the choice of channel may be influenced by the distribution coverage required, the degree of control the company desires, the total distribution costs, economies of scale, and channel flexibility. Distribution "can be viewed along a continuum ranging from intensive to selective to exclusive distribution" (Peter and Donnelly, 2007, p. 150): Intensive distribution − "the manufacturer attempts to gain exposure through as many wholesalers and...
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...Strategy and Positioning Paper Deopra Clayton, Alexander Reigstad, Jessica Baker, Sharitza Bailey Simia Sharp, Victoria Carthage MKT/421 March 7th, 2016 Professor Kenyetta Rivera SkypeSpecs SkySpecs is a rather new and up and coming company in the drone making industry. They started out as a group of engineers who has won multiple contests and have recently signed a contract with one of the largest companies in the wind energy business. Each aspect of marketing a product is important. Strategy and product positioning aids to make the product more profitable and assist with getting it to the correct markets. This is still a rather small company that is just being realized for its true potential. Next Energy recognized the unique opportunity that SkySpecs has and helped them form a partnership in the wind and utility industry. NextEnergy mentored SkySpecs, they helped them by finding them funding, they helped them make business decisions, helped them do research on the drone market, and most importantly helped them find the partnership they now share with UpWind Solutions. (Ellis, 2015) This strategic and positioning plan will discuss, how the marketing efforts and mix will change with each phase of the product life cycle. We will also describe, packaging that will be used and how packaging will add value to the product. Ending with developing a price strategy and what distribution channels will be used to sell the product and how each channel partner will add value. ...
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...New Product Launch: SONO Filter February 12, 2012 Determine and discuss a pricing strategy (Penetration or Skimming). SONO water filter is a new product in the market with limited resources and finance. I will choose penetration pricing strategy for this new product to gain market share and lure consumers away from the current competitors. This pricing strategy will sets product price low for a specific time period, but once SONO filter develop a strong clientele base, I will raise product price to the normal level. Once product’s extra features and value will be recognized by the consumer, it will create its own place in the market and among other competitors. Rather than choosing Skimming strategy, Penetration strategy would fit better in this product because the product does have other competitors, such as BRITA or PUR. Determine and discuss pricing tactics (product line pricing, value pricing, differential pricing, or competing against private brands) to be used for your product. To ensure the firm’s pricing objectives such as to achieve a target return, maximize profit, increase sales volume and to meet competition, I will have to determine a strong pricing tactics through analyzing product line pricing, value pricing, differential pricing, or competing against private brands. SONO filter will offer competitive pricing scale to its product line: including stylish water filter jugs, filtered cartridges and filtered water dispensers. While SONO products are not...
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...Module Name: Marketing Strategy OPEN UNIVERSITY MALAYSIA FACULTY OF BUSINESS MANAGEMENT BMMS5103 Marketing Strategy Master of Business Administration Name: Adam Khaleel Lecturer: Abdulla Nafiz Learning Centre: Villa College Trimester: May 2015 Contents 1.0 Executive Summary 2.0 Introduction 3.0 Analysis and mapping of the products 4.0 Analysis and mapping of the products with models 5.0 Comparison of product, pricing, promotional and placing strategies 6.0 Types of disagreement between the competitor A and the channel distribution 7.0 Channel strategy factors 8.0 Conclusion and Recommendations 9.0 References 1.0 Executive Summary Today’s business world has become much competitive that requires continuous and visible effort to get and retain customers. Companies are increasing focus on sales and marketing. Businesses need to decide which customers to target. Businesses need to work out how they will reach and win new customers. Businesses need to make sure that they keep existing customers happy. And they need to keep reviewing and improving everything in order to stay ahead of the competition. Therefore businesses need to develop appropriate marketing strategies which allow them to move forward. This is a marketing strategy report. First part will identify and explain the best analysis for two competing cosmetic brands (Competitor A and B) which consists of eight products from four product lines. In this section...
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