Strategy Report

Pricing Strategy Report

Comcast

MKTG 610 Marketing Strategies

October 1, 2013

Abstract

Comcast was first operated in 1963 under the name of American Cable Systems, with a total of a little over twelve hundred customers. In 1969 the American Cable Systems company was incorporated and named Comcast. In the beginning Comcast utilized Penetration pricing strategy and in today’s market, Comcast is utilizing three pricing strategies; Bundling pricing strategy, Variable pricing strategy and Regional pricing strategy. The current use of these pricing strategies although generating revenue for the company, has caused Comcast to have a lot of negative customer satisfaction.

In the beginning at the introduction and availability of cable TV, American Cable Systems (Comcast) had twelve hundred cable subscribers. To entice customers to acquire American Cable Systems services, the company used Penetration pricing strategy, which according to our supplemental information provided from Professor Gordon, is defined as ‘introducing a new product at a price below the product’s value in order to capture a large share of market quickly and create barriers to entry’ (Gordon, 2013) The penetration price offered by the American Cable System to its customers was a whopping five dollars a month for TV services.

The American Cable Systems company was incorporated and renamed Comcast, and as the years have gone by the company has evolved in the product and services that is offers and they have changed from their initial pricing strategy to incorporate three pricing strategies in place of its initial pricing strategy.

Comcast currently uses three pricing strategies; Bundling, Variable, and Regional pricing strategies

The bundling pricing strategy consists of Comcast offering their products together as one, two or three units. Cable TV, Internet and Phone (voice) services. A customer can pay one price to have access to all three. The prices of the bundled products...