..."Discuss the main factors affecting product pricing in the UK". • Product and price: one of the 7 ps • Pricing of a product is extremely crucial for a business because “the price of your product can either break or make your business”[i] • Examples of any 2 companies where pricing has helped in it’s success and other where it has caused a major downfall: Wal-Mart have gained and retained leadership position in its industrysimply because of their unique pricing strategy. They devised a unique pricing strategy that set them apart and gave them competitive edge.[ii] • There are several factors that need to be taken under consideration before deciding your product pricing strategy. • Intensity of competition/ type of market structure. The 3 main market structures in UK. Perfect competition, monopoly, oligopoly. Selling a product with a high profit margin would obviously be any entreneurs’ wish. However this will not be possible in perfect competition but will only work in a monopolistic market. Thus while determining it’s product pricing strategy one of the major factors is the level of competition. For example if a rival firm sells the same product at a lower price then this could have an adverse effect on your sales. The greater the number of close substitutes, the more flexible one’s product pricing strategy will have to be(details. Example. Graph). It is often assumed that setting lowest prices for your product as compared to your rivals is the easiest...
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...Assignment 2 Product, Price & Place Strategy 2150-XXX Include full names and student Ids. March, 2010 Product Strategy Product Concept Core: Convenience that promotes a better future. Actual: A backpack with a built-in, removable, cooler-like lunch box on the bottom. Solar panels on the front that will charge built in batteries that can be used to charge ipods, cell phones, and/or cameras. Compartments for reusable plastic utensils that will be included in initial purchase of the pack. A water-bottle, in its own side-pocket, that utilizes Thermos vacuum technology that will have a removable lid/straw combination, essentially turning the bottle into a “camelback” like apparatus for no-hassle beverage consumption during bike rides and other adventures will also be included. There will be an inner separation that is well-padded on all sides that will be ideal for laptop toting. There will also be an extractable water-proof cover that will pull out from bottom and cover the entire back to protect against unexpected rainfall. All of these features and benefits will be wear the Thermos name that, through its 106 years in business (thermos.com, 2010), represents reliability and sustainability in itself. Augmented: The packs will come in a variety of colours and sizes including a line of children’s packs that will have various kid-popular cartoon images on the front. There will be a 30-day satisfaction guarantee as well as a 1-year limited warranty – the limits...
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...Product, Price, Distribution, and Promotion Shenetter C. Morris Dr. Cynthia Davis HSA 505 December 11, 2011 Product, Price, Distribution, and Promotion Identify a specialty that fits for your geographic area and justify your selection. A specialty that’s fits the Alabama geographic area is women’s health. The top five areas of women’s health that are affecting the lives of women on a daily basis are: heart disease, breast cancer, stroke, autoimmune diseases, and osteoporosis. Based on research I will attempt to prove why women’s health was chosen as a specialty by providing statistical facts and benefits. Worldwide, 8.6 million women die from heart disease each year, accounting for a third of all deaths in women. Heart disease is the number one killer in the state of Alabama. Research shows that in the year 2007 a total of 11,926 people died of heart disease and of that number 6, 018 were females. On an average, nearly twenty-one females die from heart disease in Alabama each day. Alabama is one of five states to have the highest death rate from heart disease. Alabama has the second highest death rate from cardiovascular disease in the country ("Alabama state fact,”). Statistics for the Alabama area show that per 100,000 women a rate of 116.8 was white and a rate of 116.2 was black that reported breast cancer incidents. Based on 100,000 women rates of 24.1 experienced deaths by breast cancer, rates show that 21.5 of women that died by breast cancer were white and...
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...In this assignment the leaner will identify specialty that fits for her geographic area, and identify the level of intensity and the promotional strategy utilized to promote the product. The learner will be utilizing information obtained from lectures on technology research, promotional strategies, and distribution intensities. Identify a specialty that fits for your geographic area and justify your selection. “Cancer is defined as the uncontrolled growth of abnormal cells in the body. Cancer appears to occur when the growth of cells in the body is out of control and cells divide too quickly. There’re numerous forms of cancer, it can develop on any organ or tissue in the body, such as lungs, colon, or breast, skin, bones or nerve tissue. Drinking excessive alcohol, or obesity, Benzene and other chemicals are some causes of cancer. The most common forms of cancer for both sexes are colon and lung cancer. Most cancers are diagnosed by biopsy. Treatments are based on the stage and type of cancer.” According to State Center for Health Statistics, North Carolina (2009), Forsyth County was ranked number one for the leading cause of mortality at 24.1%. As the Vice President of Marketing implementing a specialization in cancer could possibly reduce the death rate and increase profit margin for the hospital. Indicate what level of intensity would promote this transition effectively, keeping in mind those physicians, employees, and consumers who will be affected by the change provide...
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...behavior that impinges on health, with consequent increased morbidity and mortality (p. 68).” Various complications of dietary behaviors such as elevated consumption of fat, sodium and sugar that can all lead to obesity and other problems can all enhance morbidity and mortality. As a society, we must adequately address the social, behavioral and economic causes of diseases and illnesses before things get out of hand. The three states of medical technology development are: 1. Scientific background and development of the idea for a product. 2. Product development, approval, and distribution. 3. Diffusion, adoption, and utilization of the product. In the first state a lot of time must be spent on individual basic science research. This research eventually come together to develop an idea for a treatment, a drug, a medical device, or a piece of medical equipment. This stage could take many years before the product is visualized or even imagined. In the...
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...placement of the products going to influence their price? Minjun Yu ECON 4980 Introduction In today’s commodity economy, it is no longer only about manufacturing, transportation, cost, profit, supply, demand, etc. There are many other factors that matters in the sales of the commodity. For many years, retailers have been searching for methods to help them identify ways to improve their merchandise presentation (Ron Larson).One of the methods that retailers used to improve the sales is the display of the products in the aisles. Bezawada has said in his reach that “retailers can benefit substantially by having better placement of items in their aisles,” (Ram Bezawada). Bezawada’s research shows that aisle placements can influence sales across product categories as much as other marketing variables, such as price or how an item is displayed (Jacqueline Ghosen, 2009). According to some researches, changing the allocation of the products will increase the weekly sales by more than 9% (Jacqueline Ghosen, 2009). From all these research, we can see that products placement is one of the most important factor that going to influence retailer’s profits. Putting products in the right place will bring more benefits. In marketing field, there are also some important theories about placement of products. It is called marketing mix which is usually refers to E. Jerome McCarthy's 4P classification for developing an effective marketing strategy. It encompasses product, price, placement (distribution)...
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...reasons for why firms would choose to reduce the price of a product and these include, substitution effect, competition, the effect of economic factors and the price elasticity of demand. The substitution effect may make a firm choose to reduce the price of a product because if the price of a substitute good increases, then firms would reduce the price of the good they are selling so that consumers buy their product as the quantity demand for their product is likely to increase. This is so that they gain a maximisation of profits from the products that they sell. For example, if there is a rise in price for coca cola, the substitution effect causes consumers to move away from coca cola and choose Pepsi when the firms reduce the price. Therefore, the quantity demanded for Pepsi increases and the quantity demanded for coca cola decreases. This shows that it is beneficial for firms to reduce prices of a product due to substation effect because they are able to increase their total revenue. Firms would choose to reduce the price of a product due to competition. If the firms’ competitors decided to reduce their prices of their products then the firm would reduce their prices even further for the same products so that the firm gains more consumers as consumers will be looking for firms that offer them the products at the cheapest price. This is because the firm would want more consumers because the more consumers they have the more products they will buy which means that the more sales...
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...Analyze Domestic DAL MILL PLANT Products Price Tendency: Northeast of China, as China's main corn producing area, has almost no surplus grains for selling. So its grain source may have a big gap. Meanwhile, the dal mill plant products, such as starch and alcohol, keep a low price and this makes the production rate keep 50% below. Corn down-stream products supply decrease and this speeds up the price rising of the dal mill plant products. Recently, America encountered serious draught, which affected the corn yield. And some farmers harvested the corn in advance and sold the corn as thin margins feed for animals. Even if it rained later, but the yield had already been affected a lot. Corn prices keep increasing in the future, and this will affect DAL MILL PLANT PRODUCTS prices. As we know that, changes on one factor always affect other related factors. Let's observe attentively. Only by this , can we seive the oppertunity and create more benefits with the lowest cost. Win Tone Takes the Lead in Dal mill plant industry of Shenyang Agricultural Machinery Exhibition A few days ago, Win Tone sales elites returned in triumph from the Shenyang Agricultural Machinery Exhibition. In this exhibition, Win Tone became the bright spot among so many corn machinery manufacturers in the dal mill plant industry by its high qualified products and proven techniques. As we know, the three provinces in the northeast of China are the main provinces for agricultural machinery manufacturing...
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...Discuss whether price is the main factor affecting the demand for Pepsi The question is telling us to discuss the whether price is the main factor which would affect the demand (the quantity of Pepsi consumers are willing to buy each month or so) for the product in this case Pepsi, this basically means to analyse the alternate factors (non price) which would also alter the demand for the product for example: price of substitute, the quality of substitute, the number of substitute, the quality, the customers income, trend of the time and also factors such as the price of the complement (a product bought with my product i.e. an association). Which in this case would be a complementary food item, like a chocolate bar or sandwich, as Pepsi may be part of a meal deal involving these category of items. The factors which will affect the demand can most generally be categorised into two groups ‘price’ and ‘non-price’ factors, and can most simply be categorised into having two affects on demand these being a direct affect (if this goes up or down the demand will move in sync) which are always non-price as price is an inverse factor which means if it rises or falls the demand will move in the opposite direction. In sum an increase in demand is caused by either an increase in a direct factor, examples: quality, income, advertising and price of substitutes, and a decrease in an inverse factor, examples: quality of substitute, price of complements. And a decrease is caused by the...
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...adding value and increasing the price of a product or service. The profit margin means the amount by which revenue from sales exceeds cost in a business. The profit margin of an organization can be increased b either cutting cost or adding value and increasing the price of a product or service as if the price does cheaper the more customers who will be able to afford the product equalling more units sold and more profit will be earned from the extra units sold. Secondly if the organization decides to make the product more expensive, then the people who are looking to buy the product will have to pay extra earning the organization more than what they would have had from the original price. Finally if the organization add value to their product it will make it unique from the market meaning the can add extra price to the product because others doesn't exist like this. This will also get the customers to be interested in the product because of it is unique so they will be willing to pay the extra cost towards it. However the profit margin of an organisation cannot be increased by cutting cost, adding value and increasing the products price because the current customers may not be able to pay from the extra cash, making less people to buy it costing the organization to lose money. Secondly adding value means that the organization will have to pay extra to make the product from the original product price. So if enough people don’t buy the product the company will lose profit for...
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...discretion in setting prices of your product ANSWER Perfect competition demands very strict assumptions that are unlikely to be found in many if any markets in the real world. Markets that most closely equate to perfectly competitive ones are those in which there are very large numbers of buyers and suppliers, reasonably free entry and exit from the market and well informed consumers. It is in such markets that the purchase decision is driven by price. A perfect competitive (price taker) market exists when the following conditions occur: • Low entry and exit barriers - there are no restraints on firms entering or exiting the market • Homogeneity of products - buyers can purchase the good from any seller and receive the same good • Perfect knowledge about product quality, price, and cost • No single buyer or seller is large enough to influence the market price Managers must take the existing market price; if they set a price above the market price, no one will buy their product because potential buyers simply will go to other suppliers. Setting a price below the market price does not make any sense because the firm can sell as much as it wants to at the market price; selling below the market price will just reduce profits. Because Managers must take the current market price a purely competitive market is also called a "price takers" market. The firm can sell as much as it can produce at the existing market price, so demand is not a constraint...
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...iv. S.W.O.T Analysis of Inner City Corporation Strengths - Competitive prices of its products. - Steady growth in its market. - The company's reputation had been built on its fast service; it frequently supplied paint to contractors within 24 hours. Weaknesses - Customers view Inner City as a company that negotiates on price and payment out of desperation. - His plant manager's only experience has been that of a painter. - Operating without management controls or financial controls. - Inability to pay suppliers on time - Poor condition of facilities - All records are processed manually - Inventory records are not kept. - Lack of proper delegation of authority. Employees take turns making paint and driving the delivery trucks. - Unskilled employees. Opportunities - Considering a purchase of a computer to organize the business and reduce needless paperwork. - Consultants who are able to quickly spot problems in business. - The production of color paints Threats - The slowdown in the housing market combined with the slowdown in the overall economy caused financial difficulty for the company. - Walsh manages the corporation today in much the same way that he did when the business began. - Walsh lacked on giving trust to other people. - Rumors abound that the company is in difficult financial straits, that it is unable to pay suppliers, and it owes a considerable sum for payment on back taxes. - Paint contractors are hesitant...
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...demand, Supply and Price of a commodity Introduction: Supply and demand are two important concepts in economics and supply and demand are considered to be the backbone of a nation’s economy. Demand is generally referred to as the quantity of product or services required by the consumers. The quantity of product or services referred to and the volume of product the consumers are ready to buy at a specific price. The demand relationship is generally referred to as the relationship between the price and quantity of products or services demanded nu the consumers. Supply generally represents the how much product or services a market can offer to the consumers. The product or services supplied refers to the amount...
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...proceed with other three Ps, that is price, promotion and place. In addition, we will also touch a bit on the global marketing. Ok. Price. What is price? You may refer to any marketing books and found many definition of price. However, the basic idea is that it is an amount that is charged to a product (or services). Due to that, it may carry other names, depending on the situation or context. It may include fees, rate, rent, tax, salary etc. In setting price, marketers may adopt fixed price or dynamic price. Example of fixed price is when you buy goods at the supermarket. You can’t negotiate on the price. Dynamic price, on the other hand, is an approach whereby the price is flexible. For example, when you buy goods at pasar malam or pekan hari. You can actually bargain with the seller. Whatever approaches adopted by the marketers, they actually set the price based on one of the three factors, namely cost, customer perceived value or competitors price. Cost is considered as the price floor. If marketers set the price below, they will experience a loss. So, a sound marketers usually don’t do that unless they plan for market rollout. In fact, they commonly set the price at the cost or known as break even (balik modal), or with a profit, either using cost-plus method or target profit method. Cost-plus is the easiest method to set price. For example, if you want a profit of rm2, given the cost is rm10, you will charge the product at the price of RM12. Another method is, if you...
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...to often judge quality by price." (W.C. Mitchell, 1912) Price is the monetary or non-monetary value that customers are willing to give up or exchange, for obtaining a desired product, which is beneficial for customers on their willingness and preferences. The consumer's preferences depend on the intrinsic characteristics of the product, such as quality and utility, are the main characteristics that customers will take into consideration of purchasing expensive product. Numerous marketing researches such as the study of relationship between price and quality (Erickson, Johansson, 1985) indicated that a price and perceived quality phenomenon exists when there is the situation of product uncertainty or lack of information of that desired product, the price will be widely used as a prediction base which it is the best available and understandable characteristic to evaluate the quality of product. These researches indicate that there is a strong psychological inclination of customers in believing that the higher priced product will relatively have higher quality, as a result, price becomes the quality cue. Under the observation of an asymmetric information experiment (Kusmierczyk, 2005), it seems that this behaviour pattern influences on producers' decision making on pricing, where most of the producers set price to declare its quality, which lead to a situation where consumers are willing to purchase a product with higher price rather than with lower price. Consumer decision-making...
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