Given your positioning statement, and value proposition, what advice do you give the firm regarding their overall pricing strategy for the new product? The firm is reviewing some data. Be alert that they may pass along some data you can use for this area. (WRITE IN DETAIL)
For its Spectrum Band, TechMark should consider using customer value-based pricing. It starts with analyzing consumer needs and value perceptions. If TechMark set the price that is higher than the Customer Perceived Value, there will be less or even no customers who would want to buy this new product. To understand on how customer perceive Spectrum Band, TechMark should know how willing customers pay for the benefits they receive from the product.(HOW ARE WE GONNA MEASURE THE CUSTOMER’S WILLINGNESS TO BUY-Customer surveys, discrete choice analysis, market data) TechMark might want to consider using the value-added pricing for Spectrum Band. Rather than matching its price with competitors, the differentiation that TechMark has on the value-added features build in the product, TechMark could charge the higher prices for this.
Also, in order to create demand for the new product, TechMark could use Market Penetration Pricing for the new product pricing strategy. This means that the price for the Spectrum Band will be stable over the long term. This is much recommended since TechMark does not need to differentiate the customers in different segments.
To maximize its profits, TechMark could use different pricing strategies as part of its product mix. Since it is highly recommended to use Spectrum Band together with the SpectraTrack, TechMark could sell this product using price bundling. This means that customers could get Spectrum Band and Spectra Track at a cheap...
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...r of other alternatives for the expanding needs of the marketplace. It could develop a new product and sell it to a new market. As a consumer driven company, TechMark should still think about the needs of health of their customers and thus stay with their corporate value. In this phase, TechMark could consider in creating a build in music app in the Spectrum Band and thus customers, especially Millennials will become more motivated to exercise and have a healthy lifestyle using the Spectrum Band. This then can be accompanied by various accessories, such as earphones that can go along with the Spectrum Band. Also, TechMark could also create a new line of sports apparel. This can be targeted towards athletes as they could wear the product to go to practices. This shows that they are part of TechMark, since TechMark’s product gives a sense of prestige for its users.
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