Pricing Strategy

Pricing Strategy

Julia Todd

Applied Managerial Marketing

March 17, 2014

After having a conversation with Michelle, I have come up with some ideas on the pricing of the new product. We have been working no stop on this new product and on everything that we need to finish this off so we can get this product done and on the market to be sold so we can make more money for our company to be able to get bigger and make more products.

First I believe we need to build a competitive advantage, this will be something that we need to decide on. Building a competitive advantage is starting out as is what is the value of your proposition? This is a way of communicating the product’s benefits and making sure the market knows all about it. Then we will look at the product pricing strategies. This is a way of figuring your pricing strategy. This includes these areas Introduction which is explained as the sales growth tends to be slow during this stage. Then there is Growth this is explained as the market acceptance grows, and sales increase during this stage. Then we have Maturity the sales growth slows because the market is saturated during this stage. Then there is Decline Profits diminish because of better competing products during this stage. Once we work on all of these areas we should be able to have a good idea of what we should price our new product.

The pricing strategy is a good way of making sure the product is really worth the price we have on the product it can also help us on deciding the price of the product. With all these things together we will have the best marketing plan out there to sell our new product.

Next we will go into advertising and public relations. This will be a part of our marketing also if we do not have advertising then no one will know we have this new product so no one will buy it so this will make the company fall. Then we will have a look at personal selling and public promotion. These are a way of selling the product from person to...