TUTORIAL 9 by Heu Kei https://padlet.com/heukei16/s7h2pzgk9xuqdoa1 Made with a curious mind en-us 2021-06-01 04:34:22 UTC 2023-05-08 14:45:15 UTC hello@padlet.com Q2. Discuss the major pricing strategies for new products. Your discussion should include the conditions for each pricing strategy to work efficiently. heukei16 https://padlet.com/heukei16/s7h2pzgk9xuqdoa1/wish/1575175311 Marketing-skimming pricing:
to set high prices to "skim" the maximum amount of revenue from various segments of the market.
Conditions: 
  • product's quality & image must support its higher price, and enough buyers must want the product at that price.
  • costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.
  • competitors should not be able to enter the market easily and undercut the high price.
Eg. Apple iphone, iPad, or Macbook: similar in a sence that all new products were launched with an initial high price, capitalizing on some people’s willingness to pay a premium for cutting-edge technology.

Market-penetrating pricing:
to set a low initial price to penetrate the market  and win a large market-share.
Conditions: 
  • market must be highly price sensitive so that a low price produces more market growth.
  • production and distribution costs must decrease as sales volume increases
  • low price must help keep out of competition, penetration pricer must maintain its low-price position.
Eg. Netflix - one month of free subscription followed by subscription prices going up. Starbucks - often introduces new and seasonal coffees and drinks at a lower price point to encourage consumers to try these new items

]]> 2021-06-01 04:37:05 UTC https://padlet.com/heukei16/s7h2pzgk9xuqdoa1/wish/1575175311 Q1. Identify the three major pricing strategies and discuss the importance of understanding customer-value perceptions, company costs, and competitor strategies when setting prices. yonzvongola https://padlet.com/heukei16/s7h2pzgk9xuqdoa1/wish/1575179320 The three major  pricing strategies are: 

  • Customer Value-Based Pricing.
  • Cost-Based Pricing.
  • Competition-Based Pricing.

-Understanding customer value perceptions is importance because positive customer perception can increase brand loyalty and generate referrals

-Understanding company cost are important because  It helps to determine the profitability of company operations and how to set prices.

- Understanding competitor based pricing important because implementing a competitive pricing strategy for the business can help the business grow and enriching  knowledge of the sector and relevant competitors will help company make better business decisions, increasing company prospects of long-term success in the business world.
]]> 2021-06-01 04:39:04 UTC https://padlet.com/heukei16/s7h2pzgk9xuqdoa1/wish/1575179320 Independent online task zyunee72ss https://padlet.com/heukei16/s7h2pzgk9xuqdoa1/wish/1575196172 - Geographical Pricing?
It is used for customer in different parts of the country of the world. It is a pricing strategy where the final price of the product is based on the geographical location of the product.

There are 5 different kinds of geographical pricing such as FOB (free on board) origin pricing, uniform delivered pricing, zone pricing, basing point pricing, and freight absorption pricing.

There are some advantages of geographical pricing.

- First, the seller nets the same amount on each sale of similar quantities.
- Second, easy to understand and calculate and serves all customers equally.
- Third, easy to calculate, a fair method of charging and maintains an advertised price for every zone.
- Fourth, an equitable allocation of freight charges and it helps a firm expand its market beyond its normal reach.

In the world famous café 'Starbucks', they use geographical pricing strategies.
For the most part, Starbucks is a master of employing to maximize profits, and they use research and customer analysis to formulate targeted price increases that capture the greatest amount consumers are willing to pay without driving them off. When we compared the price the americano on Starbucks in two different countries, the price will be different depending on their geography.


]]> 2021-06-01 04:47:21 UTC https://padlet.com/heukei16/s7h2pzgk9xuqdoa1/wish/1575196172 - Geographical pricing strategy rendirendi1807 https://padlet.com/heukei16/s7h2pzgk9xuqdoa1/wish/1575226560 a pricing method in which customers bear the freight costs from the producer's location to their own examples of geographical pricing include FOB pricing, base-point pricing and zone pricing.
Geographical pricing, as the name indicates, is a pricing strategy where the final price of the product is based on the geographical location of the product. When a company operates inside a country in many nations or regions, it must use geographical pricing according to local tax laws and local restrictions.

Example :

Let's use the example of an area that is far away from the company's central warehouse. Assume the business's core warehouse is in a city, but the area to which the business is now providing is in a rural location. The expense of transportation is enormous. As a result, the product's ultimate cost in rural areas will have to be increased. As a result, when you compare the prices of the rural and urban areas, you'll see that they're not the same. This is due to differences in cost based on location.]]> 2021-06-01 05:02:13 UTC https://padlet.com/heukei16/s7h2pzgk9xuqdoa1/wish/1575226560 zyunee72ss https://padlet.com/heukei16/s7h2pzgk9xuqdoa1/wish/1575267258 2021-06-01 05:22:35 UTC https://padlet.com/heukei16/s7h2pzgk9xuqdoa1/wish/1575267258