Discussion 5
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1. Find a company whose strategy is value based pricing. Is this an effective pricing strategy? Discuss.
IKEA concentrates its pricing strategy on providing consumers with value by offering premium items at competitive prices. One of the leading furniture shops in the world, IKEA, has had success with this kind of method. IKEA bases its pricing strategy on
providing value to the company's customers. IKEA is able to serve a
wide range of clients because it offers reasonably priced, high-quality products. IKEA has had a lot of success with their price strategy because they are one of the biggest furniture retailers in the world.
2. Find a company with a different pricing strategy. Identify the strategy and its success or failure in your own opinion. ‘
Apple has a pricing strategy known as premium pricing, which involves charging a high price for their products because buyers feel they provide a high degree of value and quality. Thanks in significant part to the approach the
business adopted, Apple is currently among the most valuable companies in the world. Apple bases its method of pricing its goods and services on the idea of premium pricing. Because the corporation charges premium prices for its products, Apple is able to convince buyers that they are of exceptional quality and offer good value. Apple's price approach has been extremely effective for the business, and as a result, the company is currently among the most valuable businesses in the world.
3. Discuss partnerships in marketing channels using an example.
It is likely for both parties involved in a marketing partnership to gain from the alliance. In order to sell its products within the stores of a retailer, for instance, a corporation could partner with that business. With more individuals to reach, the
company stands to gain, and the merchant stands to gain by being able to sell items that their customers would be interested in buying. Partnerships in various kinds of marketing channels have the ability to benefit all parties involved in different ways. For instance, a business could collaborate with a retailer in order to sell its products in the merchant's physical storefronts. This might be advantageous for both the business and the store owner. The business may reach out to new clients, and the shop can market products that would be of interest to their current audience.
4. Provide an example of disintermediation and how this could be a threat. Disintermediation is the process of eliminating middlemen from a supply chain. Businesses may be at danger as a result of this since it might reduce both their customer base and revenue. For instance, if a business relies on a distributor to sell its goods and the distributor gets fired, the business will need to come up with a new plan of action for interacting with its customers. Businesses may be at risk if middlemen are eliminated
since doing so might reduce both their client base and revenue. For example, if a business relies on a distributor
to distribute its goods and that distributor suddenly terminates its relationship with the business, the business will need to find a new way to reach its customers. This may be difficult and expensive, and it may also result in the firm perhaps losing clients as a result of its efforts.
5. Discuss 3 trends and developments in retailing and wholesaling.
Recent trends and developments in the retail and wholesale markets, for example, include the growth of internet shopping, the rise of omni-channel retailing, and the continuously rising demand for private label items.
The development of e-commerce has been one of the biggest changes in recent years in the retailing and wholesale industries. Due to its convenience and simplicity of use, internet shopping is becoming more and
more popular, which has contributed to this. The growth of omni-channel commerce has been one of the most noticeable trends in recent years. Businesses at this level
provide clients a unified experience across all channels, which could include mobile devices, mobile websites, and
physical storefronts.
The growing acceptance of goods marketed under their own brand names is another trend that has gained momentum in recent years. Businesses in this industry produce their own branded goods, which are frequently thought to be of higher quality than cheaper alternatives.
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DOE, P. author By. (2021). Apple’s pricing strategy - global marketing professor. Retrieved from https://globalmarketingprofessor.com/apples-pricing-strategy/
IKEA marketing mix (IKEA 7Ps of marketing) - research-
methodology. (2022). Retrieved from https://research-
methodology.net/ikea-7ps-marketing/
Related Questions
short answer
Moving on from Product to Price, review the following pricing strategies.
A skimming strategy prices the product high to make big profits while there’s little competition.
A penetration strategy uses low price to attract more customers and discourage competitors.
Demand-oriented strategy starts with consumer demand rather than cost.
Competition-oriented strategy is based on all competitors’ prices.
Price leadership strategy attempts to force all competitors to follow the pricing strategy of one or more dominant companies within an industry.
What pricing strategies do you see being emphasized in marketing activities today? Give a specific example of a product that is obviously priced according to one of the pricing strategies listed above.
arrow_forward
Imagine that you are the manager of a large clothing company with market power that specializes in selling blue jean pants.
1) Choose two pricing strategies that were discussed in Chapter (Pricing Strategies for Firms with Market Power) that you would implement as the firm manager.
2) Explain how exactly you would implement these two pricing strategies in the real-world
Please answer the 2nd part
Expert Answer
Step 1
"Since you have asked two questions, we will answer only first question for you. If you have any doubt, then repost the questions separately."
Step 2
1)
Market Power is the degree to which a firm can influence the price of an item by exercising control over its demand, supply, or both. Pricing strategies are aimed at finding a product’s optimum price, considering the various factors like market objectives, consumer demand, product attributes, price of competitors and market and economic trends.
Firms with market power use different price strategies to…
arrow_forward
3.Based on the way SBC's brand manager describes its overall pricing strategy across various types of bikes with varying attributes for different types of riders and varying degrees to which those attributes are incorporated, SBC employs Multiple Choice
A) product line pricing.
B)competitor-based pricing.
C) odd/even pricing.
D) penetration pricing. high/low pricing.
arrow_forward
Does "value" mean the same thing as "low price"? How do these concepts differ?
Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value?
Why might the strategy for setting a product's price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example of each.
(4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.
arrow_forward
What is the main (most important) way that Cost-Based Pricing is different from Customer Value-Based Pricing?
Would the cost of coffee beans purchased by McDonald’s be a Fixed Cost or a Variable Cost?
arrow_forward
Compare and contrast market-skimming and market penetration pricing strategies and discuss the conditions underwhich each is appropriate. For each strategy, give an example of a recently introduced product that used that pricing strategy?
arrow_forward
hink of the various pricing methods - mark-up pricing, target-return pricing, perceived value pricing, value pricing, going rate pricing, and auction-type pricing. As a consumer which method do you personally prefer to deal with. Why? If the average price were to stay the same, which would you prefer: (1) for firms to set one price and not deviate, or (2) to employ slightly higher prices most of the year, but slightly lower discounted prices or specials for certain occasions.
arrow_forward
5-
Airlines are known to jack up fares when peak travel season approaches, and they typically run their fare sales around slow seasons. This is an example of a ________ pricing strategy
Group of answer choices
everyday low pricing (EDLP)
uniform
premium
high/low
6-
Which of the following is NOT a goal of informative advertising?
Group of answer choices
inform customers about upcoming sales
increase awareness
explain how the product works
build company image
7-
A pricing strategy is
Group of answer choices
using one-time seasonal discounts to reduce inventory.
a short-term approach to setting prices
a long-term approach to setting prices in a companywide integrated effort
using slotting allowances to gain access to distribution channels
8-
I mentioned that the main tasks of advertising are to inform, remind, and persuade. At which stage of the product life cycle should the advertising focus on informing?
Group of answer choices
decline
maturity…
arrow_forward
Driving volume is a key pricing objective for many businesses. Name and give an example of a marketer that uses each of the volume-oriented pricing strategies (4 strategies and 4 different examples). On each strategy explain whether or not you believe the approach is effective? Why or why not?
arrow_forward
Value-based pricing is the reverse
process of
Select one:
O a. good-value pricing
b. cost-based pricing
c. cost-plus pricing
d. variable cost pricing
arrow_forward
Price is an important element of the marketing mix. Create a word response to the following,
* Describe the importance of pricing in the marketing mix
* Describe three different pricing strategies and provide a real-life example of each in action.
* Suggest another strategy that would have worked better.
* What are the steps that need to be followed for developing the pricing of a new product? Can these steps be interchanged? Why?
arrow_forward
A9
Let's choose a product, then analyze PRODUCT COMPENENTS (everything customers think about before they purchase), and propose all possible PRICING STRATEGIES that seller can set for the product.
arrow_forward
Assume Netflix applies different pricing for corporate buyers than for individuals, even if the content of the package is the same.
What type of pricing strategy does the different options offered to individuals and businesses represent?
a. Predatory pricing.
b. First degree price discrimination.
c. Second-degree price discrimination.
d. Third degree price discrimination.
e. Market segmentation.
arrow_forward
Research Smashburger pricing.
Discuss the three major pricing strategies in relation to Smashburger.
Customer-Value Based Pricing
Cost-Based Pricing
Competition-Based
Which do you think is the company’s core strategic pricing strategy?
arrow_forward
How do you create a 5-page informational brochure will include the following, Role of pricing decisions on the overall company and marketing strategies, Value-based pricing (value-in-use and value-in-exchange), Price skimming and penetration, Management of international distribution channels and logistics, Mass customization, Five aspects of communication, Social media mix, Viral marketing as a viable marketing tactic that can deliver a positive return on investment (ROI)?
arrow_forward
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Related Questions
- short answer Moving on from Product to Price, review the following pricing strategies. A skimming strategy prices the product high to make big profits while there’s little competition. A penetration strategy uses low price to attract more customers and discourage competitors. Demand-oriented strategy starts with consumer demand rather than cost. Competition-oriented strategy is based on all competitors’ prices. Price leadership strategy attempts to force all competitors to follow the pricing strategy of one or more dominant companies within an industry. What pricing strategies do you see being emphasized in marketing activities today? Give a specific example of a product that is obviously priced according to one of the pricing strategies listed above.arrow_forwardImagine that you are the manager of a large clothing company with market power that specializes in selling blue jean pants. 1) Choose two pricing strategies that were discussed in Chapter (Pricing Strategies for Firms with Market Power) that you would implement as the firm manager. 2) Explain how exactly you would implement these two pricing strategies in the real-world Please answer the 2nd part Expert Answer Step 1 "Since you have asked two questions, we will answer only first question for you. If you have any doubt, then repost the questions separately." Step 2 1) Market Power is the degree to which a firm can influence the price of an item by exercising control over its demand, supply, or both. Pricing strategies are aimed at finding a product’s optimum price, considering the various factors like market objectives, consumer demand, product attributes, price of competitors and market and economic trends. Firms with market power use different price strategies to…arrow_forward3.Based on the way SBC's brand manager describes its overall pricing strategy across various types of bikes with varying attributes for different types of riders and varying degrees to which those attributes are incorporated, SBC employs Multiple Choice A) product line pricing. B)competitor-based pricing. C) odd/even pricing. D) penetration pricing. high/low pricing.arrow_forward
- Does "value" mean the same thing as "low price"? How do these concepts differ? Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value? Why might the strategy for setting a product's price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example of each. (4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.arrow_forwardWhat is the main (most important) way that Cost-Based Pricing is different from Customer Value-Based Pricing? Would the cost of coffee beans purchased by McDonald’s be a Fixed Cost or a Variable Cost?arrow_forwardCompare and contrast market-skimming and market penetration pricing strategies and discuss the conditions underwhich each is appropriate. For each strategy, give an example of a recently introduced product that used that pricing strategy?arrow_forward
- hink of the various pricing methods - mark-up pricing, target-return pricing, perceived value pricing, value pricing, going rate pricing, and auction-type pricing. As a consumer which method do you personally prefer to deal with. Why? If the average price were to stay the same, which would you prefer: (1) for firms to set one price and not deviate, or (2) to employ slightly higher prices most of the year, but slightly lower discounted prices or specials for certain occasions.arrow_forward5- Airlines are known to jack up fares when peak travel season approaches, and they typically run their fare sales around slow seasons. This is an example of a ________ pricing strategy Group of answer choices everyday low pricing (EDLP) uniform premium high/low 6- Which of the following is NOT a goal of informative advertising? Group of answer choices inform customers about upcoming sales increase awareness explain how the product works build company image 7- A pricing strategy is Group of answer choices using one-time seasonal discounts to reduce inventory. a short-term approach to setting prices a long-term approach to setting prices in a companywide integrated effort using slotting allowances to gain access to distribution channels 8- I mentioned that the main tasks of advertising are to inform, remind, and persuade. At which stage of the product life cycle should the advertising focus on informing? Group of answer choices decline maturity…arrow_forwardDriving volume is a key pricing objective for many businesses. Name and give an example of a marketer that uses each of the volume-oriented pricing strategies (4 strategies and 4 different examples). On each strategy explain whether or not you believe the approach is effective? Why or why not?arrow_forward
- Value-based pricing is the reverse process of Select one: O a. good-value pricing b. cost-based pricing c. cost-plus pricing d. variable cost pricingarrow_forwardPrice is an important element of the marketing mix. Create a word response to the following, * Describe the importance of pricing in the marketing mix * Describe three different pricing strategies and provide a real-life example of each in action. * Suggest another strategy that would have worked better. * What are the steps that need to be followed for developing the pricing of a new product? Can these steps be interchanged? Why?arrow_forwardA9 Let's choose a product, then analyze PRODUCT COMPENENTS (everything customers think about before they purchase), and propose all possible PRICING STRATEGIES that seller can set for the product.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
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Publisher:Cengage Learning
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