Pricing Products – Watch the video Linking Marketing and Pricing Strategy and answer the following questions:

Question One

• After watching the pricing video, refer back to your Million Dollar Idea from Week 6. Choose the most beneficial pricing strategies and suggest two ways in which this selection could potentially affect consumer adoption of the new product.

Question Two

• Provide a rationale for your answer and post the link in your discussion, using APA formatting, for everyone to read.

Question Three

• Imaginethat you are a manager at a brick-and-mortar store that has an onlinestorefront as an additional source of revenue. The company has taskedyou with creating ideas to improve logistics in order to increaseprofitability. Discuss at least two ideas and how these will increase profitability.

Respond to Peer(s)

• Read and respond to at least one of your classmates’ posts.

My post from Week 6 discussion:

Everyproduct in the market today was first an idea. An idea can grow anddevelop into a product that eventually turns out to be an economic giantin the society, nation and worldwide. An idea can either be aboutcoming up with a totally new and unique product. It can as well be aninnovative thought on how to improve an already existing product (Dolnicar, Grün & Leisch, 2018).Every big company that is in existence came up as an idea that lateron, a person decided to implement it. The idea man can probably not bethe one implement it. People sell ideas to implementers which laterbecome fascinating and very useful globally. This paper seeks to explainan idea that can be implemented to solve people’s daily needs.

Question 1

Icannot possibly classify myself as an inventor but every day when Imeet a challenge my mind automatically flows with ideas on how to solvethe challenge. Everyone has ever encountered a challenge while lookingfor parking space especially in a busy town or outside malls. One canspend almost thirty minutes figuring out a space for parking or waitingfor a car to drive out so that one can occupy that space (Ernst & Dolnicar, 2018). Theexperience is frustrating and can cost you a lot of time. As timepasses personal cars are becoming basic needs and everyone seems to ownone. We expect our parking slots to be almost full and before one findsspace for parking it can be a bit challenging.

Havinga parking tracker can really help to identify where there is a parkingspace. This will help saving time and the hardship that one encountersbefore tracing a space to park within a busy environment (Dolnicar, Grün & Leisch, 2018).The more we are buying cars the more we need the parking trackers. Whatif the motor vehicle users can all acquire the parking trackers, wewould all be able to save the time we use maneuvering in the malls andtowns trying to trace where to park.

Question 2

Targetmarketing is considered as reducing the market into different segmentsthen you put your focus on only one or limited but prominent segmentsthat comprise of the clients that mostly need your services or productto meet their needs.

Thiscan be done with the motive of increasing sales or attracting otherbusinesses that will eventually give your business a chance to succeed (Ernst & Dolnicar, 2018).Market segmentation can be done in many and different ways but thetypes that are common are psychographic, demographic and geographicsegmentation.

The audience that I would target is motor vehicle manufacturers.I would prefer the motor vehicle industries to consider installing theparking trackers in the car system while manufacturing the vehicles.

Question 3

Theproduct may face some barriers to entry in the market which includeadvancement in technology. As time passes so is the technology improvingday in day out. The parking tracker needs to be improved more often sothat it can serve appropriately (Das, Verbraeck & Bonebakker, 2018). Thetracker will be informed of the software. I need to ensure thatcybersecurity is tight to avoid hacking and defaulting of the system.

Anotherbarrier will be the cost of the vehicles will automatically go highbecause the installation of this software will be very costly and needs alot of professionalism. In as much as the tracker will be software, itwill be too heavy to be attained on technological gadgets such asphones. It has to be installed in the car systems because it isheavy-duty software.

Anotherchallenge will be the performance of the product. The tracker will benot useful if the cars that are manufactured are not able to accommodatethe software in the system. The cars that have already beenmanufactured and are already in the market they are disadvantagedbecause they can have access to the tracker (Das, Verbraeck & Bonebakker, 2018).This barrier needs me to find a way on how I can come up with aportable device that I have installed the tracker so that people can beable to buy it separately and use it as a gadget to track parking.

Conclusion

Inconclusion, therefore, a new idea can be implemented and become a greatsolution to a challenge that has been facing a lot of people globally (Ernst & Dolnicar, 2018).As stated in the above discussion implementing an idea has somebarriers that can hinder the effectiveness of the innovation if nothandled well. The most successful innovations are those that serve thedaily needs of individuals effectively and are reliable.

References

Das, P., Verburg, R., Verbraeck, A., & Bonebakker, L. (2018). Barriers to innovation within

large financial services firms. European Journal of Innovation Management.

Dolnicar, S., Grün, B., & Leisch, F. (2018). Market segmentation analysis. In Market

Segmentation Analysis (pp. 11-22). Springer, Singapore.

Ernst, D., & Dolnicar, S. (2018). How to avoid random market segmentation solutions. Journal

of Travel Research, 57(1), 69-82.

One of the answers given by my classmate:

Dr Amans/Classmates,

1. After watching thepricing video, refer back to your Million Dollar Idea from Week 6.Choose the most beneficial pricing strategies and suggest two ways inwhich this selection could potentially affect consumer adoption of thenew product.

My million dollar idea was a microchipped golf ball. Premium golfballs can run as much as $3 a ball in some cases. And anyone who hasplayed can tell you that losing a ball that didn’t go out of bounds orin the water is frustrating. Top Golf uses microchips to tracks pointsat their ranges. Why can’t a small chip be inserted, tagged with my nameand an app to track to the level of a GPS signal (within 3 feet) sothat you never lose a ball again.

Deciding how much to price these golf balls is more than cost pluspricing strategy. I believe there is a true value based pricingstrategy that needs to be implemented along with competitive pricingwith other top tier golf balls on the market. As stated, premium golfballs can go for as high as $3 per ball. This same level of performancewith the added benefit of not losing the ball while playing then ties inthe value based strategy that these balls are actually worth thatamount. There is already evidence that there is opportunity in themarket and through test and evaluation that some mid-tier straight toconsumer balls, like Vice, preform at the same level as Titleist forhalf the cost. I would adopt this kind of type ball and insert the GPSchip but charge the same as the new Pro-V1 (~$55 per dozen). We wouldneed to be competitive in the premium ball market but can market theadditional value to entice the buyer to try our product

1. Provide a rationale for your answer and post the link in your discussion, using APA formatting, for everyone to read.

Our marketing and pricing strategy will be tightly linked.Product, price, promotion, and place will be closely looked at. Very fewgolfers remain loyal to a golf ball manufacture. Feel and performanceremain high on the customers desires and those two characteristics arepresent throughout the market. This is why the average golfer will playalmost any ball that suites their needs. Where we can differentiateourselves is in highlighting the “no more losing balls” additionalvalue.

By. (2019, January 23). Global Golf Ball Market Growth Over The Forecast Period 2019. Retrieved from https://www.marketwatch.com/press-release/global-golf-ball-market-growth-over-the-forecast-period-2019-2019-01-23

Golf Info Guide. (2020, February 11). Retrieved from https://golf-info-guide.com/golf-tips/equipment-choices/golf-ball-price/

1. Imagine that you are amanager at a brick-and-mortar store that has an online storefront as anadditional source of revenue. The company has tasked you with creatingideas to improve logistics in order to increase profitability. Discussat least two ideas and how these will increase profitability.

I would create an app that has the online merchandise andintegrate the marketing and pricing across both platforms. To many timesdo “in-store” or “online” sale prices vary. I understand both thoughtprocesses as to why but this can confuse the customer. Sale promotions,coupons or any additional incentives needs to be seamless across both. Iwould also highlight the ability to do in-store pickups or return dropoffs instead of solely online. This will help drive foot traffic and theease of not having to repackage and mail anything back.

-Adam

References:

Kotler, P., & Keller, K. L. (2016). A framework for marketing management. Boston: Pearson.

Here’s another answer from a classmate:

Dr. Amans, and Class,

Question One – After watching the pricing video, refer back to your Million Dollar Idea from Week 6. Choose the most beneficial pricing strategies and suggest two ways in which this selection could potentially affect consumer adoption of the new product.

Mymillion-dollar product was a personal-snowplow used on a car or SUV.The best pricing strategy is value pricing, with a pricing objective ofmaximizing market share. The product must be the low-cost alternativeto the high priced commercial products like ATV snowplows, andcommercial-grade product, but must provide quality and functionality.The market segment is narrow and demand is geographical, so the productmust be priced to be an attractive low-cost alternative to the productsin the market place today. The two most critical factors arefunctionality and price.

Question Two – Provide a rationale for your answer and post the link in your discussion, using APA formatting, for everyone to read.

Accomplishingthe fundamental function of removing the snow is easy; designing alow-cost mounting system that is easily attached to the car is thelargest challenge. The customer will not be interested in the product ifthe mounting system is too complex. Designing the mounting system coulddrive the fixed cost of production above the orienting price of thecompetitors. The consumer must be attracted to the benefit the productprovides, the cost, and the ease of use and storage. The quality of theproduct is critical, and a snowplow can take a beating depending on eachconsumer’s situation. The unit cost will greatly depend on the design,the material used and labor need to produce. If the plow falls off thevehicle or breaks, the consumers will not find value or convenience inthe product.

Question Three – Imagine that you are a manager at a brick-and-mortar store that has an onlinestorefront as an additional source of revenue. The company has taskedyou with creating ideas to improve logistics to increase profitability. Discuss at least two ideas and how these will increase profitability.

Ihave some experience with this, I manage a team of equipment engineers,and we are responsible for ordering equipment, inventory management anddistribution for millions of dollars of equipment to the region.

Thefirst step in improving logistics is to dissect the current supplychain customizing the process from which the channel the purchase isbeing made. The business must understand the consumers purchasingbehaviors, from a volume perspective and the consumer’s preferences andexpectations perspective. We call the end-user (customer) expectations aservice level agreement or SLA. The business needs to know what theconsumer expects and is willing to do to get their product. Inventorycontrol, asset management, and handling material can be expensive andcomplicated so a partnership with a 3^rd party can help managegreater volumes of products, Kuhn and Nagel. One way to increaseprofitability is to speed delivery by partnering with the manufacturerto fulfill on-line purchases directly eliminating steps in thedistribution process. Depending on the current situation, implementing astore owned distribution point geographically positioned to meetconsumer demand can build efficiency improving delivery time andaccuracy, the way Amazon uses distribution points. Order accuracy andcustomer satisfaction can decrease profitability by processing returnsso efficiency in orders and handling returns is critical. The store canalso include in-store pickup to reduce shipping and distribution costs.We have used time and motion studies to help reduce labor costs togreat benefit.