Please post a 250 to 500 word entry on the Discussion Board under Discussion Board 3: Pricing Strategies.
This assignment must be submitted within the first week after the start date for the Learning Module. This allows your fellow students time to read through the posts, learn from them, and respond for credit. Responses may be posted any time prior to the end of this Learning Module. Please prioritize your reading this week to be able to craft a thoughtful and academic discussion post that demonstrates your understanding and application of the concepts we are learning in this Module.
Price is the ONLY revenue generator in the marketing mix. Three common pricing strategies that are utilized in the introductory stage of the product life cycle are described below.
A price skimming strategy occurs when a company sets a high initial price for a product. This is typically utilized for high-end products that may involve a vast amount of technology. This strategy is utilized to go after consumers who are willing to pay a high price and buy the product early. Over time, the price of the product decreases so that more consumers are willing to purchase the product. All the while, the company skims profits off of various consumer groups.
A penetration pricing strategy utilizes the opposite type of strategy. Instead of charging a high price and then lowering it, a penetration pricing strategy sets a low initial price. The objective is to gain market share quickly. This is more common for products that face severe competition in the marketplace and can be produced in high volume to decrease costs.
Another pricing strategy is known as everyday low prices; it involves a company setting a low initial price and then continuing to charge the low price for the duration of the life cycle.
Find an example of marketing a brand or product for each example strategy above and compare/contrast how each brand uses these strategies. Be sure to address what you think each firm’s pricing objectives are in using their approach to pricing, applying the knowledge from the text. Once a classmate has used a brand in a discussion example, you must choose a unique one. In other words, if someone uses Walmart as their “everyday low prices” strategy, no one else may use it. You must come up with brand or product examples different from other discussion post entries in your own discussion post.
Include One Citation from chapters 13-16 and One Citation from an outside source.
Post at least ONE (1) well-written response to one of your classmates. Your entry should contribute something substantive to the discussion. Respond to a classmate who has no previous feedback, if possible.
Use proper grammar, punctuation, and spelling appropriate to an academic setting.
Purpose: The purpose of this assignment is to understand learnings from chapters 13 – 16 as marketers adopt pricing strategies into their planning and to discuss how the marketing principles we are learning about apply.
This assignment is worth up to 60 points towards your final course grade. 50 points for your original, well-written introduction and 10 points for a response post to one of your classmates, as outlined in the grading rubric below:
|Discussion Post||Initial Post||Response Post|
|Is the post the correct length and is it written with good grammar and punctuation appropriate to an academic environment?||20||5|
|Does it follow the prompt instructions for subject matter?||20|
|It is written with thought, well-organized and polished, or just average at “checking the box”for requirements?||10||5|