Please respond if you can complete it in 11 hours

Write 350 words on the main topic and respond to the given article with 250 words.

1) Write 350 words with 3 peer reviewed references in APA format

Which is more detrimental to a firm, pricing your product or service too high, or pricing your product or service too low?

Please focus on the following points for main topic and response

· Be familiar with the various approaches to Marketing Strategy

· Be able to create and implement a Strategic Marketing Plan

· Have a working knowledge of Product, Place, Price and Promotion Strategies

· Understand the relationship between Marketing and other functional areas

2) Respond to 1st article with 250 words

Pricing has an important role on customers purchase for the product. Product price matters to the customers as well as to the seller. Success of a product is a combination of favorable market trends, product quality, customer liking and product innovation. Too high and too low prices affect your product.

Low pricing can affect the sales volume by taking them up or down. At times, a common strategy implemented is pricing the product low so that more customers are attracted to the product. However, in such cases customers usually do not tend to rely on the product quality. Customers are willing to pay more for quality products. Low pricing can also give out an indirect message that your product is not as good as the competitor products. Low pricing means low sales and thus it is not possible to cover the manufacturing costs with low sales numbers.

Similarly, over pricing on the flip side can prove to be detrimental since the end user is always going to compare the company products to other competitor products. Experts say pricing beyond the customers desire to pay will also lead to a negative response from the customer and will reduce the sale numbers drastically. A common ideology is to set high prices for products right at the start in order to cover up for the manufacturing costs, wages of employees, leasing amounts for office spaces etc. However, companies fail to understand the customer line of thought and his willingness to pay. Would it be fair enough to pay this much for this product is a thought always running in customers mind? This is an extremely important thought that needs to be taken into account by product development teams via market studies and research. Conducting customer surveys, questionnaires to analyze the spending powers.

It is always advisable to balance the pricing aspect for a product. Both high as well low pricing can be detrimental in determining sales and profits earned. It is extremely important to have a fair pricing so that optimum output can be achieved from the same. Knowing your customer base, being aware of the cost, having a pre worked out target revenues, good research about the competitors can do the trick.

References

1. Wasserman, E. (00:00:00). How to Price Your Products. Inc.Com. https://www.inc.com/guides/price-your-products.html

2. How Does Poor Pricing Affect the Success of a Product? (n.d.). Small Business - Chron.Com. Retrieved September 28, 2020, from https://smallbusiness.chron.com/poor-pricing-affect-success-product-36373.html

3. McCormick, M. (n.d.). 12 early warning signs your pricing is failing. Retrieved September 28, 2020, from https://blog.blackcurve.com/12-early-warning-signs-your-pricing-is-failing