2nd P of Marketing - Price

Account and justify your pricing strategy according to the 4 main factors of Pricing:  

1. Customer (what do they want)
2. Costs (fixed, variable, etc)
3. Competition (same, higher or lower?)
4. Corporate Objectives (profit making, non-profit?)

Pricing Techniques

ìCost-plus pricing: Profit = Price – Cost (Bottom-line)
ìGoing-rate pricing: “Follow the competitor”
ìMarket Skimming: “Start high”
ìMarket Penetration: “Start Low”
ìOdd and Even Pricing: Using Psychology

Market strategy One

In your business report,

ìWork on the “Product” component of Marketing Strategies.

ìInclude the Tangible and Intangible features of your product.

ìAnatomy of your product.

ìClassify your product.

A product consists of 2 components

ìTangible factors
ìQuality, color, texture
ìIntangible factors
ìEnhance “product offering”
ìBranding, customer care, warranty

Anatomy of product
ìThe Core Product
ìCar = transport
ìThe Tangible Productì physical/ unique features
ìThe Augmented Product
ìadded value
ìThe Future Product
ìLT d/d


B2C market
ìConvenience Goods (routine)
ìShopping Goods (some risk)
ìSpecialty Goods (great risk)
ìUnsought Goods (“forced to buy”)

Disclaimer for Survey Form

ìDisclaimer: This survey is entirely an I&E project for academic purposes only. No real product/service shown in this survey is being manufactured or sold

vision statement

1.Start by choosing your achievement(s)

ìFive years from now, (my company name) will ___________________ by ________________________.

ìE.g. Five years from now, Tiny Tots Diaper Service will be the top grossing diaper service in the Lower Mainland by consistently providing a reliable, affordable service for Moms and Dads with small children.

mission statement guidelines

ìList 5-10 words or phrases that describe your business. Highlight the three most important.

ìList 3-5 words or phrases that describe the company's ideal image from a customer's point-of-view.

ìListing 3-5 words or phrases that describe the company's ideal image from a management and employee point-of-view.

Should consist of:

ìWhat business

ìWho to serve

ìTo whom

ìValues

Objective for Share/stakeholders, Etc

Partnership

My group chose limited liability partnership because it is quick and easy to set up, has fewer formalities and procedures to comply with than a regular company and it is quite cheap to set up if everyone in the group contributes toward the payment needed to set up.

Partnership

We choose partnership as it is easy to administer and manage and have lesser regulatory agreements to comply with rather than the company. We did not choose limited liability partnership as it is much more expensive to register than partnership. We also did not choose limited partnership as we want all partners to be involve in the management.

Ain, Yee Theng, Ben, Michael and Wun Juan.