Marketing Management

MARKETING MANAGEMENT (A)

The Price Is Right?

1. It is but proper to be generous to your loyal customers. As a token of appreciation,

quantity discounts could be offered – to be able to sell in bulks. The more they buy,

the lower the per unit price. However, the Sales Manager’s point was so true. With

this matter, probably, when offering such discounts, we could lock-in customers – so

at least we are at ease that we preserve certain market share as well as it thwarts

and prevents the new entrants, even the existing competitors. On the other hand, if

the clients would not agree to this bond, we could still counter offer. Incremental

discounts or quantity based price per product could be offered. For instance, in

every dozen they purchased, customer will be receiving discounts. But here’s the

catch, it will not be applied to all products. We are to assign certain products to be

discounted every other time. With this note, we are certain that customers would

still and always come back to check out what are the featured products.

Another thing, the company could also consider the freight rate. If they saved costs

because of the weight of the cargo or the distance of delivery since delivery to

certain places differs, they could spread the saved costs to discounting.

2.

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Suzanne Lister tries to infiltrate huge volume of market share because of the

attractive introductory pricing. Since this line of product sounds new, she hopes

to achieve quick dissemination and acceptance of the products. She desires to

obtain high sales of volume.

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“Buy Ten, Get One Free” would be more appealing for trade buyers, especially

for bulk orders. It sounds more conspicuous for them. For instance, they are to

buy 1000 units, but since it is on an introductory price, they just have to buy 900

units. On the other hand, retailers would prefer 10% discount. Most of them

won’t buy a lot for it’s just a newly introduced brand.

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Basically, both offerings...