Principles of marketing

Principles of Marketing – MKTG 3010 Homework #3: Pricing a New Product Due: by beginning of class, Monday April 3. Late papers will lose 4 points, and 1 additional point for

every day late past the deadline.

Instructions: This is a written assignment that should fit on a maximum of 3 (three) standard 8.5 by 11

sheets. Please double space and format in 11 point Times Roman at the smallest. The layout should be

legible.

Make sure your name and UNID are on your write-up. Please turn it in as a PDF file via Canvas.

Read the HW3 Background Information posted to Canvas. You may consider some of the information in

the background description irrelevant to your answers; that’s fine. Then, in a maximum of three pages –

fewer is fine if you can answer the questions well – answer the following questions and decide on a final

price:

(1) Which of the two possible target markets should Eliza Minden pick, and why? (3 points)

(2) What feature(s) of the new pointe shoe will the target market find most valuable? (2 points)

(3) What price will you set for a pair of shoes, and why? Make reference to three relevant pricing

concepts/terms from this course – e.g., cost vs. perceived value pricing, break even, skimming

vs. penetration, product line pricing, segmented pricing, etc., etc. (3 points)

Once again, this is a real company, so please don’t use Google to help with your answers – the point of

the homework is to think through the pricing decision on your own.