University of Houston Chapter 9 Pricing Strategies & Concepts of Marketing HW There is a Part A, B, and C to this: Part A Please read the below | Course Hero
University of Houston Chapter 9 Pricing Strategies & Concepts of Marketing HW There is a Part A, B, and C to this:
Part A
Please read the below post. Is it supported by solid rationale? Would you make a different decision?
The reply should be one paragraph in length (or about 75 words) and must be substantive in nature. Do not simply say I agree or That is great.” Specify why and be detailed in your explanation. You may use research in your responses. I’ve included two preferred resources below
Preferred Resources:
-Core Concepts of Marketing- Chapter 9 Pricing the Product (PDF is attached)
-5 Marketing KPIs You Cannot Measure but Should Care About Nicole Rodrigues; https://bit.ly/2OpMup9
Hi,
Snacks can be an important part of a diet. Depending in the snack, it can provide energy and nutritious vitamins and minerals. Glen/Sugar free snack bar, is one of a kind. This organic on the go snack back is designed to provide energy and healthy nutrients in between meals. This bar has the recommended vitamin and minerals recommended by health professionals. According to National Institute of aging minerals help the bodys functions, while vitamins helps the body resist infections and keep our nerves healthy (NIH.gov). Gluten/Sugar free snack bars objective is to provide a high quality nutritious snack at a reasonable price. We want to portrait a trustful image in order to attract loyal customers and stay in the market as a relevant product for many years to come. As described by Nicole Rodrigues from the Forbes Agency Council states that loyalty is perhaps the most reliable indicator of customer behavior. Moreover, Marn and Rosiello have suggested that pricing is the only element of the marketing mix that produces revenues. We will have our initial price meet the competitions prices, allowing flexibility and allow discounts for repeat buyers. We want to make this product as accessible as possible for everyone. Out product will be reliable, in order to increase sales Final price will be decided considering a break-even, Contribution analysis and marginal pricing. Oxenfeldt (1983) defines the mentioned pricing methods as follows: break-even is the price determined at the point where total revenues are equal to total cost: contribution analysis is a deviation from break-even analysis where direct cost of a product is considered and margin price is the price it cost to product the product. As price is a loud communicator of our product, we are going to make sure an unambiguous analysis is done before a price is set for this new product.
Resources cited:
-https://bit.ly/2CDitQ5
-Core Concepts of Marketing- Chapter 9 Pricing the Product (PDF is attached)
Part B)
Please read the below post. Is it supported by solid rationale? Would you make a different decision?
The reply should be one paragraph in length (or about 75 words) and must be substantive in nature. Do not simply say I agree or That is great.” Specify why and be detailed in your explanation. You may use research in your responses. I’ve included two preferred resources below
Preferred Resources:
-Core Concepts of Marketing- Chapter 9 Pricing the Product (PDF is attached)
-5 Marketing KPIs You Cannot Measure but Should Care About Nicole Rodrigues; https://bit.ly/2OpMup9
Hello,
Seoul Food is an elegant yet relaxed restaurant where Southern-style home cooking meets traditional Korean food. The restaurant is split into two sections the left having a traditional theme with private seating while the right has an open floor plan with a more family-friendly feel and a bar in the back.
Businesses rely on their prices to cover the expenses it takes to continue to operate; this is called pricing objectives (Burnett, n.d). There are five different types of business objectives: survival, profit, sales, market share, and image. At first glance and without context, I would choose to use profit as the business objective of choice for my restaurant. Nobody wants to run a business that is not successful, and just covering the operation expense is not going to ensure that I will be able to generate a hefty retirement from the business either. While staying in the black is excellent, making money on an investment, in this case, a restaurant is even better.
Referring back to the theme and the ethics that Seoul Food was built on, it is easy to choose that the pricing strategy we would use would be the image objective. This objective focuses on pricing around the image that the business would like to create with the local community (Burnett, n.d). Seoul Foods primary goal is to be a relaxed restaurant that is here for the people; this cannot be accomplished if the prices do not allow for the majority of the local community to afford to dine at our establishment. By setting prices too high, you take away from the family-friendly environment that we have worked so hard to create and turn it into a fancy date night or special occasion restaurant, taking away from the exact premise in which it was built.
Thanks
Resources cited:
-Core Concepts of Marketing- Chapter 9 Pricing the Product (PDF is attached)
Part C)
Please read my original post, and the response to my post. For this part I’m asking you to reply to the response.
The reply should be one paragraph in length (or about 75 words) and must be substantive in nature. Do not simply say I agree or That is great.” Specify why and be detailed in your explanation. You may use research in your responses. I’ve included two preferred resources below
-Core Concepts of Marketing- Chapter 9 Pricing the Product (PDF is attached)
-5 Marketing KPIs You Cannot Measure but Should Care About Nicole Rodrigues; https://bit.ly/2OpMup9
Original post:
Perfect Foods Restaurant is a local restaurant that will be established within the local community organized around a common love of traditional American cuisine. Perfect Foods transcends a typical American traditional restaurant that puts real heart into customer service. It also evokes the real memories of perfect love for American cuisine through unique presentations. The restaurant will operate within local communities serving the inherent needs of the community members particularly the older population. The restaurant also seeks to create a comfortable and fun environment that aims at evoking the real memories of the older population and letting them share the real traditional food memories with their grandchildren and their children at large.
Pricing objectives are the goals that guide the business in setting the cost or pricing of the product or service to the companys current and potential customers. In other words, the pricing objectives underpin the product pricing process and should reflect the companys financial, marketing, product, and strategic goals (McCormick, 2017). It should also integrate the aspect of consumer price expectations. Perfect Food Restaurant pricing objective includes maximizing profits, increasing its sales volume, deterring market competition, and most importantly matching the level of market competition. Each of these pricing objectives requires different pricing strategies that must be aligned with the goals and objectives of the restaurant. Moreover, there must also be a firm understanding of the restaurants product and service attributes as well as the overall market (McCormick, 2017).
Based on the goals of the restaurant, the current pricing objectives are to increase its market share by fostering market penetration to help attract the maximum number of customers. To achieve these pricing objectives, the company will adopt a low product pricing strategy that is slightly below the current market price. This will help the company win price-sensitive buyers. Because the restaurant will operate in a roughly saturated market, it is critical to adopt a strategy that can help the company to rapidly gain the highest market share. By bringing down the product unit cost, the restaurant will be able to penetrate the current market and even create barriers to entry by other restaurants (Smith, 2011). However, the company must be ready to absorb the risks becausethe penetration strategy is highly risky from a profitability standpoint. Once the company has established a sustainable market share, then it will be easier to increase prices in the future.
References cited:
McCormick, M. (2017). Why pricing objectives are fundamental to business success. Blackcurve. Retrieved from https://blog.blackcurve.com/why-pricing-objectives-are-fundamental.
Smith, T. (2011). Pricing strategy: setting price levels, managing price discounts and establishing price structures. Journal of Revenue and Pricing Management, 12(5), 470-471. See attached PDF “pricing strategy”
Reponse to my post:
Hi,
I like your approach and explanation of your restaurant, however I think I have mentioned this before. Why are you more focus in the elderly community? Dont you think that is limiting you potential growth in the food market?
Anyhow you mentioned that your objective is to stay within the same price range as your competitors, how are you going to determine that price? Will you be using the break-approach at the beginning of your business in order to make sure you stay afloat and service the market at the beginning? I strolgy suggest you use this approach.
Are you going to offer citizens discount since they are your targeted audience.
Resources cited:
-https://bit.ly/2CDitQ5
My reply to this response:
(This is Part C)
