To start off this assignment, first make sure to review the required background materials carefully and make sure you have a solid understanding of the various pricing strategies and when they are typically used. There is also a listing of optional readings that may help you with the concepts and could serve as useful references for this assignment.
Once you have finished reviewing the background materials, think carefully about the following situations and write a four- to five-page paper discussing what pricing strategy you would recommend in each of the situations. For each recommendation, make sure to explain your reasoning and to cite one of the required background readings in support of your recommendation. Make sure to cite at least three sources from the background materials in your paper:
- A company has developed a new 3D television with outstanding displays. The company has a patent on a new technology that doesn’t require glasses to see the 3D effect and has a display far better than those of any competitor’s 3D televisions. The company still has to compete with other television manufacturers, but because of the patent and superior technology it is likely to have a large advantage in the 3D television market for at least a year or two.
- A brand new company has developed a new dishwater detergent which is comparable to other major brands in quality, but the company has developed a new manufacturing technology that over a period of time should be able to produce detergent at a cheaper cost than any competitor. The cost of the new manufacturing equipment was high, but once the equipment is paid off it should be very cheap to produce each bottle of detergent.
- You have just opened up a new electronics shop and Apple will be releasing their latest iPhone in a few days. You are confident that once customers come into your shop they will be impressed with your large selection and knowledgeable and friendly sales staff and will become loyal customers. However, given the nearby location of Best Buy and other popular electronics shops it will be a challenge to get customers into your shop. So the first big pricing decision you have to make is what to charge for iPhones.
- You have started a new fashion company, and your partner in this business is one of the top designers in Italy. You and your business partner’s plan is to become known as one of the premier manufacturers and designers of blue jeans in the world, and hope to have a very high end brand well known among the wealthy and fashion conscience.
- Answer the assignment questions directly.
- Stay focused on the precise assignment questions, and don’t go off on tangents or devote a lot of space to summarizing general background materials.
- Make sure to use reliable and credible sources as your references. Articles published in established newspapers or business journals/magazines are preferred. If you find articles on the internet, make sure it is from a credible source.
- Reference your sources of information with both a bibliography and in-text citations. See the Student Guide to Writing a High-Quality Academic Paper, including pages 13-14 on in-text citations. Another resource is the “Writing Style Guide”, which is found under “My Resources” on the TLC portal.
As with Modules 1-3, start off by reviewing the Pearson tutorial:
Pricing. (2014). Pearson Learning Solutions. New York, NY.
The following reading is relatively simple and reinforces the discussion of some of the key pricing strategies discussed in the Pearson tutorial such as skim, penetration, and cost-plus pricing and also covers some additional pricing strategies.
Richardson, N. & Gosnay, R. (2011). Chapter 7: You paid how much? Develop Your Marketing Skills- Creating Success Series. Kogan Page Ltd., London, GBR.
Now read up on pricing strategy in more detail with the following two readings:
BPP Learning Media. (2013). Chapter 10: Pricing. Marketing Principles: Course Book. London: BPP Learning Media. [EBSCO eBook Collection]
Forsyth, P. (2007). Chapter 4: Pricing policy and tactics. Demystifying Marketing: A Guide to the Fundamentals for Engineers. London: IET. [EBSCO eBook Collection]
Richardson, N. & Gosnay, R. (2010). Chapter 7: You paid how much? Creating Success: Develop Your Marketing Skills. Kogan Page Ltd., London, GBR. [Ebrary]
MKT301 Price (Case Assignment)Chartered Institute of Management Accountants (2013). Chapter 6: Pricing decisions and pricing strategies. Performance Management. London: BPP Learning Media. [eBook Business Collection]