marketing
s.ian3
mod_4.rtfPricing & Marketing Plan Development
Pricing & Marketing Plan Development
Pricing & Marketing Plan Development
Nancy Arteaga
Allied American University
Author Note
This paper was prepared for MKT220, Module 4 Homework Assignment taught by Theodore Framan.
MKT 220: Module 4 Homework Assignment
PART I:
- The concept of “Pay what its worth” doesn’t work in the upscale restaurants as these places have injected some usual stereotypes in the society. Where people have this perception that small shop should sell things in low prices no matter what their quality is, while the big plazas or restaurants are justified to ask for much more money as compared to the worth of their product or service.
- This model of paying for the actual worth is suitable for the service business model, as customer’s feedback and perception of the provided service matters a lot in it.
- This model is only suitable for those kind of business model where brand name do not have much importance. It is quite evident that brand name makes people pay much more than the actual price of the product or service. So where ever the brand name is weak or people are actually interested in output instead of showoff status of the service’s name, then in such situations this model is quite suitable.
- Economic strength is of great importance in this business model, if economic strength gets too strong then this model might seem to get a bit weak as people will be more willing to pay more than the actual worth of product or service.
2. According to the model under consideration, pricing and all other factors which promote the product or service in market, are totally dependent on the actual quality of the product or service which a customers is getting from the company. If company is providing high quality service then the price would automatically be high. It also counts the stereotype in where people have this perception that low priced products have low quality as compared to the high priced products. So
3. Define the following:
- Elastic demand: where change in price effects the demand of the product
- Market share: percentage of market in which business effects the market of that particular industry
Price bundling: where different products are bundled together and seller offers them for a single price
Break-even analysis: analysis of the revenue collection of any business, where it is determined that when and how company has reached its total expenditures. This is called break even analysis.
Value based pricing: putting price on the products depending on their quality and true value in which they can serve the customers.
