Price primary decision to be made when considering price dynamics is given by the pricing strategy the company must opt for. They must also consider seasonal pricing, discount pricing and price flexibility.
Pricing strategy: immediately after launch, the manufacturer will implement a penetration pricing strategy aimed at forming and consolidating a loyal customer base; this strategy will also ensure and easy penetration of the market and will attract the attention of the market. With the completion of the promotional strategies, Lex Corporation will implement a variable pricing strategy, meaning that the retail price to the end consumer will be given by the cost incurred during the production and distribution of the fridge; a change in these costs (commodities, technologies, labor force) will be reflected in the retail price
Seasonal pricing: a clear season when fridge sales increase or decrease has not been clearly identified; therefore, no seasonal strategies will be implemented
Discount pricing: to encourage massive purchases and to reward the customers who buy more from the company, Lex Corp will offer several discounts; for instance, when purchasing five fridges, the customer will get a 30% discount for the next product he will acquire
Price flexibility: also to make it easier for the customers to purchase their products, the manufacturer will be flexible in regard to the payment possibilities. In this particular instance, they will accept an advance with the possibility of a second payment when the fridge is delivered to house of the buyer; other flexible payment opportunities regard the payment by installments or the payment through a personal short-term bank loan
Place
The third P. Of the marketing mix revolves around the decisions to be made in regard to the most advantageous channels of distribution to be used by Lex Corporation. Their decisions are centered on features such as the usage of intermediaries or the direct selling of the products as well as other logistics issues, such as storage, warehousing or transportation.
Intermediaries: the usage of intermediaries is often a favorable choice as it eases the work of the manufacturer and implies reduced costs; on the other hand, it places a new link in the process, furthering and such the producer from the end customer; in other words, the producer will be unable to maintain constant communications with the customers, and to identify new demands and retrieve feedback, they will have to request the services of a tertiary entity
Direct sales: this process implies that no tertiary party will interfere between manufacturer and buyer, but additional costs will arise as the company will have to possess and administrate a retail facility; the risks generated by direct sales are larger as are the investments, therefore, the best solution for the primary stages would be the usage of intermediaries
Logistics: the storage and transportation of the fridges will be ensured by the company and they will also offer customer the possibility to make a payment and have the product delivered at a specified time in the future; this possibility will be embraced by those customers who have recently purchased a home and do not currently have the space to store the product, but only need it after they renovate the location.
Promotions
Promotional strategies play a vital role in the successful launch of a new product as they are aimed to familiarize and attract the customer to the respective item. In making the best decisions in regard to the promotional campaign, the company will have to select the most suitable promotional...
The Power Frappuccino was however not introduced directly in all markets, but was first of all tested in different representative markets for a reaction from the customers. We can see from this example that the two main sources for new product ideas worked closely together before this product was introduced. Another product that was tested during the late 1990s was the Chai Tea Latte, combining black tea, exotic spices, honey
The difference in country's economic condition makes Coca Cola to fix difference prices for the same product across different countries. 3.2: Integrating Pricing strategy with branding strategy ATC will use a unique brand position to ensure that customer accept prices fixed for its product and services, and the company will use differentiation strategy to make customer accept the prices fixed for its product. By creating a strong brand position, ATC will
Marketing Strategies: Adult Pleasure Toys and Lingerie This report discusses the presence of a company that produces adult toys and lingerie. There are several parts to this analysis. First, the report examines the market segment and defines the target customer according to several types of segmentation. For a complete understanding of the targeted market, the report chose psychographic segmentation, demographic segmentation, behavioral segmentation and benefits sought segmentation. The choice for these methods
Marketing Strategies Competing in today's economy, demands that a business find ways to break out a commodity status to meet customer needs more than competing firms do. A sound marketing strategy requires effective planning; this helps a business to capitalize the opportunities present in the market and leverage their strengths. Service businesses and firms encounter a number of unique cost considerations that need to be addressed when formulating service pricing strategy.
Marketing Plan CIC is a cardiac imaging center that has just opened, trying to win business from the established competitors in town with better equipment and service. The focus in terms of building market share is to oriented the marketing reps to build strong relationships with the physicians and the payers, both of whom are key drivers of business. This will help CIC to take advantage of the favorable social conditions
Marketing Strategy With an increasing number of female consumers interested in do-it-yourself household repair and maintenance activities, the Graf Hardware Corporation decided to launch a line of tools geared for female needs and tastes. These tools will differ little from their generic counterparts but will boast attractive and colorful handles and the grips will be smaller, made for the female hand. A marketing strategy for this new line of female-oriented tools
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now