Explain what alternative methods are available to marketers to price products?

The Marketing Mix: Price – 3 PAGES

Introduction

In this ASSIGNMENT we look at pricing methods, taking into account the viewpoint of both the buyer and the marketer.

Assignment

Write a THREE PAGE paper in which you complete the following assignment:

Using the teaching materials and any additional research explain what you think would be the most appropriate pricing method and why for TWO branded products selected from the following list. In doing so compare and contrast the two pricing methods explaining why you think they would be similar or different.:

•MEDIA DISTRIBUTOR, (e.g. Netflix)

•CANNED VEGETABLES

•ASPIRIN

Assignment Expectations

Ensure that you repeat the question in full and verbatim on the title page of your submission.

You may well wish to illustrate your arguments using estimates of costs and other figures for the products you have chosen. In that case it is quite acceptable to invent some reasonable numbers rather than taking time to research them. Place any detailed calculations in an appendix, (not counted in the page limit), after the references.

It is expected that you will use information from the back gound readings as well as the articles and any good quality sources you can find. Please cite all sources and provide a reference list at the end of the paper.

The following will be assessed in particular:

•Your demonstrated understanding of the marketing concepts central to the case question.

•Your demonstrated understanding of factors related to the development of an effective pricing method through the analysis you conduct in the context of the case.

BACKGROUND MATERIAL

The Marketing Mix: Price
Having developed an understanding of how consumers make purchase decisions, and how marketers analyze markets and select targets, we turn our attention in Modules 02-05 to how firms can win and retain customers and here in Module 05 we focus on the final element of the Marketing Mix, Price, what it costs the customer to own our product. Note that this conception of Price, rather than “What we charge the customer”, more usefully represents the customer-oriented perspective taken by marketers.

This raises a number of questions such as:

•What alternative methods are available to marketers to price products?

•What factors do marketing managers take into account when setting a price?

1. The course designer has prepared background materials for each module that can be accessed through the presentations link at the top of each page.

2. An extensive glossary of marketing terms can be accessed at

Marketing Power Dictionary (2011). American Marketing Association.. Available March 7, 2013 at

http://www.marketingpower.com/_la

3. The following reference covers a range of marketing topics:

Marketing Made Simple. (n.d.). Available March 7, 2013 at

http://www.marketing-made-simple.com/

ASSIGNMENT Readings

Christ, P. (2011). Principles of Marketing. Available August 30, 2012 from KnowThis.com. Review the following chapters:

•Pricing Decisions

•Setting Price

Available March 7, 2013 at

http://www.knowthis.com/principles-of-marketing-tutorials/

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