assaignment 2

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2.0.2 Pricing Strategy: Pricing strategy refers to method companies use to price their products or services (http:/ 2014). This scheme will be considered as activities that aimed at finding the optimal cost for a certain product, typically shall be included; overall marketing objectives, consumer needs, product attribute, competitors’ pricing along with market and economic movements. Basic Pricing Strategy: In this paper, the pricing strategy that will be used is; the customer value-based pricing. Value pricing based on the proposition that the price of a product or service should relate to its value from the perspective of a particular customer, prices are set to reflect individual willingness to pay (Christ 2011). This pricing scheme will use the value that a product shall deliver to a segment of clients as the primary component for setting prices. Conversely, customer value-based methods will take the customer perspective into account, but relevant data will be more difficult to obtain and interpret. This method shall be positively correlated with new product success, therefore it will be the best strategy to adopt in making decisions around new product pricing. Here the company shall employ the good value pricing strategy for their products (higher education and consultation services). This method will offer the right combination of quality and good services at a fair price. Competition Issues vs. Pricing Strategy: Determining the price of a product will be based on what the competitor is turning on. Competitive pricing shall be practiced more frequently by different businesses whom selling and supplying similar products, since services will vary from business to another while the pro... ... middle of paper ... ...and social networks), seminars, presentations and exhibitions. Direct channels for transmitting services for institutions and educational firms shall be via: advertising in newspapers, T.V, radio, online (internet and social networks) along with ads posters in rounded buses and trains. Direct channels for distributing the company’s services for business owners will be through: walk in enquires (face to face sittings) only. Distribution Costs: The costs of distribution are here considered as the total outlay and expenses involved, including profit, in the performance of the distributive function, that is, in getting goods to the consumer at the right time, in the right place, in the right quantities and at the right place (Ward 1973). This type of cost shall be incurred through moving company products from the point of production to the point of consumption.

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