Case Assignment
To start off this assignment, first make sure to review the required background materials carefully and make sure you have a solid understanding of the various pricing strategies and when they are typically used. There is also a listing of optional readings that may help you with the concepts and could serve as useful references for this assignment.
Once you have finished reviewing the
background materials, think carefully about the following situations and write
a four- to five-page paper
discussing what pricing strategy you
would recommend in each of the situations. For each recommendation, make
sure to explain your reasoning and to cite one of the required background
readings in support of your recommendation. Make sure to cite at least three
sources from the background materials in your paper:
- A company has developed a new 3D television with
outstanding displays. The company has a patent on a new technology
that doesn’t require glasses to see the 3D effect and has a display far
better than those of any competitor’s 3D televisions. The company
still has to compete with other television manufacturers, but because of
the patent and superior technology it is likely to have a large advantage
in the 3D television market for at least a year or two.
- A brand new company has developed a new dishwater
detergent which is comparable to other major brands in quality, but the
company has developed a new manufacturing technology that over a period of
time should be able to produce detergent at a cheaper cost than any
competitor. The cost of the new manufacturing equipment was high,
but once the equipment is paid off it should be very cheap to produce each
bottle of detergent.
- You have just opened up a new electronics shop and
Apple will be releasing their latest iPhone in a few days. You are
confident that once customers come into your shop they will be impressed
with your large selection and knowledgeable and friendly sales staff and
will become loyal customers. However, given the nearby location of
Best Buy and other popular electronics shops it will be a challenge to get
customers into your shop. So the first big pricing decision you have
to make is what to charge for iPhones.
- You have started a new fashion company, and your
partner in this business is one of the top designers in Italy. You
and your business partner’s plan is to become known as one of the premier
manufacturers and designers of blue jeans in the world, and hope to have a
very high end brand well known among the wealthy and fashion conscience.
Assignment
Expectations
- Answer the assignment questions directly.
- Stay focused on the precise assignment questions, and
don’t go off on tangents or devote a lot of space to summarizing general
background materials.
- Make sure to use reliable and credible sources as your
references. Articles published in established newspapers or business
journals/magazines are preferred. If you find articles on the
internet, make sure it is from a credible source.
- Reference your sources of information with both a
bibliography and in-text citations. See the Student Guide to Writing a High-Quality
Academic Paper, including pages 13-14 on
in-text citations. Another resource is the “Writing Style Guide”, which is
found under “My Resources” on the TLC portal.
As with Modules 1-3, start off by
reviewing the Pearson tutorial:
Pricing. (2014).
Pearson Learning Solutions. New York, NY.
The following reading is relatively
simple and reinforces the discussion of some of the key pricing strategies
discussed in the Pearson tutorial such as skim, penetration, and cost-plus pricing
and also covers some additional pricing strategies.
Richardson, N. & Gosnay, R.
(2011). Chapter 7: You paid how much? Develop Your Marketing Skills-
Creating Success Series. Kogan Page Ltd., London, GBR.
Now read up on pricing strategy in
more detail with the following two readings:
BPP Learning Media.
(2013). Chapter 10: Pricing. Marketing Principles: Course Book.
London: BPP Learning Media. [EBSCO eBook Collection]
Forsyth, P. (2007). Chapter 4:
Pricing policy and tactics. Demystifying Marketing: A Guide to the
Fundamentals for Engineers. London: IET. [EBSCO eBook Collection]
Optional
Reading
Richardson, N. & Gosnay, R.
(2010). Chapter 7: You paid how much? Creating Success: Develop Your
Marketing Skills. Kogan Page Ltd., London, GBR. [Ebrary]
MKT301 Price (Case Assignment)Chartered Institute of Management Accountants (2013). Chapter 6: Pricing decisions and pricing strategies. Performance Management. London: BPP Learning Media. [eBook Business Collection]
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