...Product, Pricing, and Channels Paper Learning Team A - MKT/421 Professor Luis Product, Pricing, and Channels Paper The following paper discusses how the Grayl, a water filtration equipment manufacturer offers its personal water filtration device to a number of target markets such as those who are health conscientious, environmentally focused, outdoor enthusiast and travelers. The discussion covers a number of topics such as the product features and benefits, the phases of the product lifecycle, the packaging of the product, the pricing strategy, and the channels of distribution. Product Features and Benefits The Grayl is a water filtration cup that functions much like a French Press. Filtered, good tasting water is as convenient as ever with the Grayl. Simply fill the outer cup with water, press the inner cup in the outer cup, and in as little as 15 seconds the Grayl filters the water by isolating it in the inner cup. During the filtration, the Grayl removes, chemicals, metals, and most of the bacteria commonly found in unfiltered water. The Grayl thoroughly filters water using technology that features a triple-charged ion mesh that pulls germs and viruses out of the water with magnet-like force. It also features an anti-microbial agent that ensures freshness every time. Though convenient at home, school, or office, the Grayl will also eliminate worries about finding clean water when on-the-go for a number of reasons such as day-to-day mobility; outdoor and...
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...analyse the production, distribution and consumption of goods and service. Economics studies how individual and government allocate resource to satisfy the market demand. Economics can divide into two which is microeconomics and macroeconomics. According to Jeffrey Glen (2013), microeconomics is a study about the insinuation of individual human action, especially about how the decisions made affect the distribution and implementation of scare resources. Microeconomics show the concept of supply and demand, how a business establish prices, how individuals make efficient decisions and how individuals cooperate with one another. Microeconomics is not an explanation for what happen in a...
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...The real price an industrial customer pays is quite different from the listprice; this is because of the factors like delivery and installation cost, trainingcost, discounts, financing cost, trade in allowances etc. AcroPDF - A Quality PDF Writer and PDF Converter to create PDF files. To remove the line, buy a license. MBA-Marketing Industrial Marketing3. By changing the quantity of goods & services provided by the seller,changing the premiums and discounts that are offered, changing the time andplace of payment and also in numerous other ways prices can be changed.Compare to product and distribution decisions, the decision regarding pricing ismore flexible.4. The complimentary and substitute product sold by the same company shouldbe considered at the time of deciding price for industrial goods.5. Prices can be resolved through negotiation in many a cases. In most of thecases the industrial prices are established by competitive bidding on a project byproject basis.6. Industrial buyers who are experienced and able to estimate the vendors’approximate production costs expect the increasing price to be justifiable on thebasis of either increasing cost or improvement in product. Hence, industrialpricing is often characterized by an emphasis on fairness.7. Industrial prices are affected by several economic factors such as...
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...Gas Prices and the Economy The marketplace of supply and demand determines the price of fuel. If demand grows or if supply decreases, there will be an increase in pricing. On the flip side, if demand declines or if there is a surge in supply in the market, there will be a decrease in pricing. If a retailer in the market prices its gas too high without regard to competitors’ pricing, consumers will take their business to the competitor with lower prices. If the retailer loses enough business due to higher pricing, they will lower the prices to be more competitive in order to retain customers. Retailer competition affects gas pricing which can be seen by price differences on stretches of highway with multiple gas retailers. More choices generally mean more competition for the retailers. Even though many retailers carry the gasoline of major oil companies, they are independent dealers of the product and can set prices as they wish. The cost of foreign trade is contributes to the rising cost; however, many other factors contribute to the pricing of gasoline which drastically affects buyers and sellers in the marketplace. According to the Chevron Corporation, like agricultural products, such as wheat and corn, and precious metals, such as silver and gold, crude oil is traded on the world market. Recently, crude oil prices have risen dramatically, driven by rising global demand and political instability in several oil producing countries (“The Price of Fuel…”). Since crude...
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...statements for planning and decision making 10 References 12 1. Be able to apply cost concepts to the decision-making process 1.1 explain the importance of costs in the pricing strategy of an organisation The pricing strategy becomes the major element in marketing mix of Dell Computers as it is related to product positioning. When there is a planning for new product launch pricing strategy is important and it requires general sequence of stages involved during pricing the new product. The different steps are as follows: (Daft, 2011) * Developing marketing strategy – helps the company to develop marketing strategy based on market analysis, market segmentation and positioning * Marketing Mix decisions – Defining a product, distribution and its promotional tactics * Estimation of demand curve – Estimating the demand and understand how it varies from quantity wit price * Cost Calculation – Calculation of fixed cost and variable cost associated with product development * Knowledge about environmental factors – Understanding the factors related to competition for the product and legal constraints * Setup of pricing objectives – Planning for profit, revenue maximization and price stabilization * Price determination – From the information collected from all the above steps a pricing strategy...
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...Thomas Money Service Inc. has been in business since 1940 and provides a wide array of financial services for both individual consumers and large businesses. Thomas Money Service Inc. branched out in 1946 to include also a financing subsidiary called Future Growth Inc. (FGI) that specializes in equipment financing. The current global downturn, Thomas Money Service Inc. and FGI must restructure its operations and broaden its financial services for profit-maximization. This paper will identify how Thomas Money Service Inc. and its subsidiary FGI can improve its finance services for consumers and how its elasticity of demand and market structure can be analyzed to increase consumer spending. This paper will include ideas for increasing revenue, determination of the profit-maximizing quantity, how to use its marginal cost and revenue to maximize profit, non-price and pricing strategies, creation of barriers to entry, and product differentiation. How to Increase Revenue Thomas Money Service Inc. and FGI discontinued equipment financing of other brands of equipment when they began manufacture of their own equipment brand, Thomas Money Service can start cross-selling equipment financing to expand to other consumers and to give their current consumers more purchasing and finance options. This strategy will allow FGI to outpace competition by the development of new business opportunities, sales growth, increased revenue, diversity from other financial service providers, and...
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...in one swipe with no batteries, cords or power supply required (P&G, 2014). Business Proposal Market structure: P&G market structure is what is called Oligopoly; Oligopoly is a form of market where there is domination of a limited number of suppliers and sellers. P&G is the world’s largest consumer products company controlling over 90% of the market. In the consumer products market P&G is the leader and main competition to all other consumer product companies. At P&G a lot of time money and effort goes into product research and development and advertising is very important part of competition (P&G, 2014). Elasticity of the product(s): Over the last 10 years P&G has had to face some stiff competition from a handful of powerful low-priced retailers such as Wal-Mart, Target, and supermarket chains that offer private label brands or store brands. Because Procter & Gamble has the biggest portfolio of products in the household and personal care industry and generates over one and half times the revenue than its closest competitor, the price of The Sweep and Trap is elasticity (P&G, 2014). Pricing relate to elasticity of product? To combat private label competition P&G has two similar forms of The Sweep and Trap. The original Sweep and Trap and the Swiffer Sweeper; which is offered at a lower price. With P&G offering similar products at different...
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...1) Pharmaceutical Industry in India: India is the third largest pharmaceutical market in the world in terms of volume. The market is believed to grow at a compound annual growth rage (CAGR) of 14-17 percent in between 2012-16. There has also been a considerable growth in the levels of pharmaceutical exports from India. The industry started picking momentum in the early 1960s, with government actively encouraging the sector with the Patents Act. However, the liberalization of 1991 enabled the industry to become what it is today. Many of the Indian companies principally observe reverse engineering of the new processes for manufacturing drugs at low costs. Although some of the companies have taken baby steps towards innovating newer drugs, the industry as a whole tends to follow this business model. The lack of patent protection, on the other hand, makes India undesirable for multinational companies that have dominated the market. So the pharmaceutical market in India has a tremendous potential for indigenousness. In this context, comparing a global pharmaceutical company with its Indian counterpart becomes evident. GlaxoSmithKline and Ranbaxy: A Comparison GlaxoSmithKline is a British multinational pharmaceutical company also dealing in biologics, vaccines and consumer healthcare. Headquartered at London, it is the world’s sixth largest pharmaceutical company. The company was established in 2000 by the merger of Glaxo Wellcome and SmithKline Beckman Corporation. A giant...
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...Assignment 3 LONG TERM INVESTMENT DECISION The grocery food market is filled with various options for microwavable food depending on the preferences of the consumers. Instead of the traditional use of the oven many families now use the microwave because of their busy lifestyles. The variety of healthy low calorie -microwave food has made shopping much easier for today’s busy consumer. Low calorie labels are regulated by the Food and Drug Administration (FDA) and require food “labels claiming low-calories must not have more than 40 calories for a given reference amount (except sugar substitutes)”. (The Calorie Control Council, 2014) Healthy low-calorie microwave foods have come a long way since the first Swanson pre-packaged TV dinner in the 1950’s. The meal tray was heated in the oven and consisted of a small portion of meat, two vegetables and dessert. The top two competing manufacturers of microwavable low-calorie foods are Lean Cuisine owned by Nestle and Healthy Choice owned by ConAgra. Both leaders in the frozen food market began in the 80’s. Healthy Choice works rigorously with the FDA to assure foods qualify under government health standards for healthy low calorie foods. Like all businesses these two businesses need a financial business plan that allows them to assess the company’s results and set targets for future growth. Marketing is a vital part of the business plan. Healthy low calorie microwave food as a health option is a concept which has gained enormous...
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...well determine the particular market structure in the economy. Task 1 : You are required to identify different types of market structure , and explain how market structure determine the pricing and output decision of business : There are many types of markets: * Perfect competition * Monopolistic competition * Oligopoly * Monopoly * Duopoly Perfect competition Perfect competition can be described as competitive depends in part on how many suppliers are seeking the demand of consumers and with a new businesses can enter and exit a particular market in the long run. In a market economy, competition occurs between large numbers of buyers and sellers who vie for the opportunity to buy or sell goods and services. Perfect competition exists when there are so many people in the market, and other conditions are such, that no-one can influence the price, all other things being equal. Monopolistic competition is when a large number of firms sell closely related but not homogenous products. There are three ways: * There are many buyers and sellers * Entry and exit are easy * Firms take other firms price as given Oligopoly is when there are a few large suppliers, and business decisions affect each other. Monopoly is a business environment in which a single company, by controlling a specific supply of products or service, set prices, prevents other business from entering the market and controls the available supply of the product or service. Duopoly is a market...
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... In every business environment there are four management functions found which are planning, organizing, leading, and controlling and each of these are used by everyone in a company from upper level management to the entry level employee. When thinking about internal and external factors we must look at globalization, technology, innovation, diversity and ethics which all affect these business functions. According to Bateman and Snell (2011, p. 4), “Companies that want to grow often need to tap international markets, where incomes are rising and demand is increasing.” Internal factors include production, customer service, and marketing strategies. For example, company branding can affect a company’s image. One can associate with the quality of products and services with a company’s brand and is often the first thing that people see when interacting with a company. External factors include new market environments to which a company must be accustomed, consumer analysis, and market analysis. A new product introduced into a new market depends upon consumer reactions. A company must analyze trends by segmenting markets into different consumer types and identifying their motivation of buying. Internally, Globalization influences the vision of expansion within the leaders of the company. The leaders of the company will have to properly evaluate what the demand is, in order to keep production moving at the rate it needs to be moving to meet supply...
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...distribution of diamond production through a reliable and stable stream of quality diamonds. DeBeers has been a highly successful and effective controller of the diamond market, having developed a unique purchasing and marketing cartel that has influenced prices in the market for almost a century. Since the company was founded in 1888, De Beers followed a strategy of supply control. In addition to mining its own diamonds, it bought diamonds from other producers controlling about 90% of the world's diamonds. The United States was far and away the world’s biggest purchaser of diamonds accounting for 46% of total demand followed by the Middle East with 12% and Japan with 9%. De Beers has advertised, for a long time, using the caption ‘A diamond is forever’, does the same apply for De Beers’ business model and strategy? Over 80% of the world’s diamonds were traded through the De Beers CSO until 1990s. De Beers’ tight control and regulation over a vast amount of supply and optimization of the timing of release through the CSO enabled it to keep prices high for diamonds successfully creating a notion that diamonds are scarce. The CSO served as a clearinghouse for the entire industry. Suppliers were forced to sign an exclusivity requirement with the CSO. It regulated the quantity and price in the market. Producers are charged a handling and marketing fee, ranging from 10% to 15% per cent, depending on the amount purchased and the general demand situation. CSO blended different grades...
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...Chapter 6: marketing Marketing * Marketing is the process of developing a product and implementing a series of strategies aimed at correctly promoting, pricing and distributing the product to a core group of customers. * The purpose of this is to determine what the business should be producing. * Marketing is used primarily by a business as a method of enhancing its revenue streams and increasing the market’s awareness of its products.The strategic role of marketing * The strategic role of marketing extends also to society which includes: * Choice- Businesses differentiate themselves from their competitors through price, product quality and features and service. All these provide consumers with greater choice when purchasing a product. * Standard of living- Businesses will often develop and market products that improve and enhance standard of living. To provide consumers with better products. * Employment- To provide a product to consumers, businesses must employ labour to assist in transforming input resources into finished products. Labour is also required to sell these goods and services. * Brand awareness- Brand awareness refers to the extent that customers are aware of a product/ brand and its features. It is achieved through strong and effective marketing campaigns. * All of this is done to increase the market share. Market share refers to the percentage of total sales a business has compared with its competitors in a particular market...
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...took users through each division of the company, that if which being Consumer Goods, Coal, Chemical, and Forest Products. The simulation aided in the differentiation between the four market structures. It also taught students to identify and interpret cost and revenue curves for each market. The Consumer Good’s Division of East-West Transportation Inc operates as a perfect competitive market. A perfect competitive market structure has “a large number of buyers and sellers” (Colander, 2004). With this type of market structure, no company controls the market price. The CEO develops the market price to determine the output of production to maximize profits. The CEO, implements the output where MR equals MC. Therefore, the profit maximizes at a point where P equals MR equals MC. The CEO evaluates the study and determines at this point, East-West Transportation Inc will continue to operate. Even with losses at every level of production, the continuation of production allows the company to recover the variable costs but not fixed costs. Shutting down the operations the company would incur losses equal to the fixed costs, which is higher than the continuation of production. The Coal Division of East-West Transportation Inc is a “regional monopoly” (University of Phoenix, 2009). A monopoly structure firm has control over setting prices and therefore, “does not take the market price as a given” (Colander, 2004). Although a firm is a monopolistic structure, demand plays a large...
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...TASK 1 MARKETING PRINCIPLES JANUARY 2016 TASK 1 MARKETING PRINCIPLES JANUARY 2016 IMPORTANCE OF BRANDING IN RELATION TO DIFFERENTIATION * Differentiation helps customer recognize the brand within a category * Significance * Creates value * Brand loyalty IMPORTANCE OF BRANDING IN RELATION TO DIFFERENTIATION * Differentiation helps customer recognize the brand within a category * Significance * Creates value * Brand loyalty Differentiation creates a perceived value amongst consumers and also potential consumers. For example, Apple’s focuses on the cost value of getting an iPhone versus other phones within the market. If differentiation is done well by an organization, it helps to deliver quality and value to consumers which leads to brand loyalty on the part of the consumer. Apple has consistently delivered on providing iPhones which are high in value and of value to the consumer. This has helped build a high loyal customer base that will always pick an IPhone over any other product any time. Differentiation creates a perceived value amongst consumers and also potential consumers. For example, Apple’s focuses on the cost value of getting an iPhone versus other phones within the market. If differentiation is done well by an organization, it helps to deliver quality and value to consumers which leads to brand loyalty on the part of the consumer. Apple has consistently delivered on providing iPhones which are high...
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