Essay on Strategic Marketing Pricing

Essay on Strategic Marketing Pricing

Length: 1033 words (3 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Pricing Striates 2
1. Contribution is calculated based on price and costs. Often, we treat these variables as fixed. What are the implications of treating uncertain variables as fixed?
Some of the implications of uncertain variables could be payroll. You would have to have some baseline of how much you would be paying out every week. Someone may be out sick and you don’t replace the hours or you replace the hours with another employee that has a wage
Running an advertisement in the newspaper that you have changed to size that you want to put in the paper that would change the price either way it could be more or it could be less.
If you have delivery service than there would the price of gas changes from week to week. You would have to budget a little high if you are to come out even.
2. What are examples of conflicting motivations that might lead well- meaning managers to undercut a stated pricing strategy?
Some of the conflicts could be personal when someone comes into the store that the manager knows and gives them a good price break and that could turn into more than once and keep on going.
There also could be a computation between store manages that work for the same company. One may cut the price so the customers come to his store and adds volume to his store but in the token hurting the store the profit margin.
If a store manager has an ego problem of always wanting to be the best and showing everybody up to be the best. He may do whatever it takes to make himself feel better although he may not even know it or believe it.
Pricing Striates 3 ...

... middle of paper ...

...mental cost of doing business is a variable and can’t be determined until the company put it out into the market to see if the item is going to sell and any revenue.
It all comes down to how much overhead the business has if said company has two thousand dollars overhead the business must set pricing to meet the overhead to cover the cost of daily business. If the business keep on the same pricing strategies and wasn’t getting enough revenue then the business would have to close or do drastic change in liquidating some assets to free up some money to stay in business.

Works Cited

chapter 10. (n.d.). In The Strategy And Tactics of Pricing (p. 183). (Reprinted from The Strategy
And Tactics of Pricing, Fifth ed., p. 183, by T. T. Nagle & J. Zale, 1987, New Jersey: Prentice

In The Strategy And Tactics of Pricing

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Strategic Marketing Process

- Strategic Marketing Process The purpose of this paper is to briefly explore the strategic marketing process, specifically the key phases of planning, implementation, and control. In addition, the application of mixed marketing to create a market segments as well as customer loyalty is equally explored. Several relevant scholarly sources were identified to provide research and information about the strategic marketing process and its evolutionary development from the industrial to the information technological age....   [tags: Marketing]

Better Essays
966 words (2.8 pages)

International and Strategic Marketing Essay

- International and Strategic Marketing The globalization of business markets from domestic to international has generated a unique competitive advantage for all the organizations whose products and services are being welcomed by the customers all around the world demanding mass marketing efforts. In this regard, marketing research in the international environment is having different methodology and complications with respect to geographical boundaries of a specific country in which penetration and development of a product is required....   [tags: Business Marketing ]

Better Essays
2061 words (5.9 pages)

Essay on Pricing Strategies

- Pricing Strategies (graphics not included) One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it is related to product positioning. Pricing also affects other marketing mix elements as well, such as product features, channel decisions, and promotion. A pricing strategy is a course of action designed to achieve pricing objectives. This strategy helps marketers set prices. There are many ways to price a product. The following, figure 1.1, shows a list of five major types of pricing strategies....   [tags: Business Market Marketing Price]

Free Essays
1685 words (4.8 pages)

Essay on The Importance of Branding in the Marketing Mix

- Introduction What comes to mind when you hear the term “brand” or “branding” in marketing. Nike. McDonalds. Five dollar foot long. Whatever it is, the importance of branding in the marketing mix should not be argued against, instead, it should be studied further to reveal what makes this aspect so important. Therefore, the following is an assessment of what a brand means to consumers and the effect it has on their purchasing behavior. This will also evaluate the importance of brands to the companies that own them and the qualities each company hopes to attain when creating their brand....   [tags: Marketing]

Better Essays
1769 words (5.1 pages)

The Importance of Branding in Marketing Essay

- Literature Review Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding....   [tags: Marketing]

Better Essays
3270 words (9.3 pages)

Foundations of Marketing Theory Essay

- Marketing has evolved since the olden days when people used to trade with goods for goods. This led to the introduction of the trading centers where people could go and exchange their goods with others and mostly the agricultural products. The theory of marketing explains how the market came into existence and the various means in which the marketers, the producers, the sellers and the consumers ensure total satisfaction. In this essay different subjects concerning the fundamentals of marketing theory have been discussed and how they affected the traditional market and the present market....   [tags: Marketing]

Better Essays
1956 words (5.6 pages)

Essay about Marketing Analysis At Kudler Foods

- Marketing Analysis at Kudler Fine Foods Kudler Fine Foods, a gourmet food store was founded by Kathy Kudler in 1998 with the vision to provide customers with a variety of quality products such as bakery, meat and seafood, cheese and dairy, wine, and produce with over 350 fresh fruits, vegetables, herbs and spices from all over the world. Kudler Fine Foods opened its first store at La Jolla, California and within five years of operations expanded to Del Mar in the year 2000 and Encinitas in the year 2003 all stores located in San Diego County, California....   [tags: Business Marketing]

Free Essays
1331 words (3.8 pages)

Essay on Branding, Pricing, and Distribution

- Assignment 3: Branding, Pricing, and Distribution Dr. Englehart MKT: 500 Marketing Management A. Keaton December 20, 2013 Domestic and Global Product Branding Strategy Branding is a necessary strategy in which Organic Vita-Hair must use to create product awareness and recognition. This is especially the case since the company has chosen global markets as its target market due to its e-commerce structure. In order to complete this branding strategy, the company will use the following logo on all of its products, websites, and other related material: The goal of the company is to create a strong sense of recognition for this logo so that consumers recognize it when browsing through pro...   [tags: marketing management, push or pull strategy]

Better Essays
1047 words (3 pages)

Marketing Proposal Essay

- The senior management needs to involve all level of staff in decision-making processes. Importantly, they should be informed and assured of the strategies that the management is going to introduce and initiate on behalf of the organization. The equal opportunity of involvement and participation certainly develops the feeling of ownership. Armstrong (2006) points out that an ethical approach is based on high- commitment and high-involvement policies. As a result, the staffs suppose the effective implementation of the strategies framed out with their suggestions and consents as their responsibility and accountability, which in turn help the management concretize its targets....   [tags: Marketing]

Better Essays
2273 words (6.5 pages)

CD Pricing in the Recorded Music Industry Essay

- CD Pricing in the Recorded Music Industry Case Analysis Strategic Marketing Management EMI music group was formed in 1931 when Gramophone Company merges with Columbia Graphophone to form Electric and Musical Industries (EMI 2007). EMI started with operations in nineteen countries and has eventually grown to operations in over fifty countries. EMI has the rights to over one musical composition. Of the five major music companies, EMI has the least market share in the Unites States. This market share may now be in jeopardy as Universal Records has decided to decrease the price of its CD's in an effort to generate sales....   [tags: Business Case Study]

Free Essays
1903 words (5.4 pages)