Mkt 402

1) Big Fizz Co., a manufacturer of cola-flavored drinks, wants to add packaged fruit juices to its existing product line. Big Fizz must make some decisions regarding packaging and branding the fruit juices. These decisions would fall under which variable of the marketing mix? A. Product

1. President Obama's health care plan requires all U.S. citizens to purchase a minimum amount of health insurance or be fined

Pricing Objectives involve specifying the role of price in an organization’s marketing and strategic plans. These

1. In planning its market offering, the marketer must address the five product levels of the customer-value hierarchy. Describe the “customer-value hierarchy” and identify and explain the five levels of product contained within.

[ (Wasserman, 2012) ] This approach could return the greatest profit margin but would cause a fluctuation in price when other costs increase. According to Professor Osteryoung, one should be aware of what competitors are charging for the same service. Yet he cautions against competing on price. Instead, he suggests that service companies compete on service, ambiance, or other factors that set [them] apart," [ (Wasserman, 2012) ] The other factor discussed by Professor Osteryoung is perceived value to customers. Osteryoung points out that setting a price for a service can be subjective. He rightly posits that pricing (for a service) becomes an art form when one considers that “the important factor in determining how much (a customer is) willing to pay for a service may not be how much time was spent providing the service, but what the customer perceives as the value of the service and the level of expertise,” [ (Wasserman, 2012) ]

Before Mobile Marketing determines which pricing strategy to choose, the organization should consider the overall objectives. Which pricing strategy will fit best with the objectives of the new product development? Is the purpose to make the most amount of profit the fastest way possible, or to develop a long lasting relationship with the target market to establish long-term profitability and growth? Determining the key objective will help to discover which pricing strategy works best, however, the company has to make a profit to continue business. According to M.U.S.E. (2013), pricing involves the customer demand schedule, the cost function, and the competitors’ pricing. All three factors need to be addressed during the discussions of the following pricing strategies.

Thus, now a day, restaurants and, more generally, the food industry cope with the obligation of attracting more and more customers, developing loyalty and at the same time keeping their brand image for the customer. The marketing tools used in order to do those obligations are wide-ranging into the general Marketing Mix. But, for instance, as traditional restaurants and fast-foods do not have the same budget to develop their marketing strategy, they have to find new tools beyond the ones they commonly use such as low-prices strategy or timesaving for instance. Indeed, it can be quoted as basic tools already used the low-prices strategy5 mostly used in the fast-food industry and targeting urban workers and students all around the world. For instance, a regular meal at McDonalds costs around 10$6. In other restaurants, prices are also important as it gives a good brand-image: gastronomic restaurants or renowned bakeries can display high prices because they provide high quality products, service, reception and atmosphere. Those two different strategies are indispensable for them to stay competitive on their respective market and to differentiate themselves from the others. It could also be quoted another important tool in the food industry: timesaving. In a fast-food, for instance, the customer will expect to be served as fast as possible because it is one of the aim of that kind of restaurant7. In a traditional restaurant, the customer expects to wait longer because of

"We will prepare and sell quick service food to fulfill our guest 's needs more accurately, quickly, courteously, and in a cleaner environment than our competitors. We will

To demonstrate the impact of food quality, food verities, friendly atmosphere and good customer services on restaurant success. To improving marketing strategy

The overall pricing strategy of any company depends upon the type of demand that is being made by the

A spectacular product that a company might be selling can go bad if the product pricing is not done with proper evaluation. With too high a price, the customers will run away and too low a price, the profits will not be substantial. Price setting is a complex task that requires consideration of costs to the budgeting of key demographics.

The Segment “price” is a part of the marketing mix as well. It focuses on the pricing of the product and

But they are however too likely to focus on the costs when they take part in appropriate price strategies. Marketing experts focus on a group of customers i.e. the certain market segment and their own needs considering each as possible target market. The company then will decide which segment to target with different product and marketing mix. Each of these approaches will be highly important in pricing. We can take an example of a restaurant, which has different number of customers coming in at different hours of the day. Now the customers coming in at the peak hours are too many and it creates problem for the restaurant staff and the place available . The owner will hire extra staff and furniture to solve the problem but his cost in expenditures will go up. To make the restaurant profitable and to serve the customers better he takes all these actions and make them feel special by providing extra facilities to the customers. But at the same time he has made a point that these expenditures will be born by the customers to get those extra waiters and furniture for them. This way the customers are informed about this and the owner gets the money back in form of profit .

2) Customer Wants -: Customers always want good quality food in cheap prices and quickly.

Price interacts with all other elements of the marketing mix to determine the effectiveness of each and of the whole. The objectives that guide pricing strategy should be a subset of the objectives that guide overall marketing strategy. Thus, it is probably wrong to view price as an independent element of marketing strategy or to assert that price, by itself, is a central element in the marketing mix.” (Webster, 1979)