Pricing Strategy Introduction
Marketing Response 1.) Carter
Pricing Strategy Introduction
Boone et al. (2021) note that in most cases, marketers will attempt to set the prices for products or services at an amount that optimizes or maximizes profit. Still, in some situations marketers will attempt to set prices in a way that strives to hit a certain target profit, maximize growth in either unit sales or market share, or meet competitor pricing without starting a pricing war (Cannon et al., 2020). Of course, marketers understand that lower prices usually result in higher unit sales and lower profit margins, while higher prices tend to lead to higher profit margins and lower unit sales. Marketers refer to the association between profitability, price, and consumer demand as the cost-volume-profit relationship.
Cost-Volume-Profit Relationship
Marketers must determine the optimum price to achieve their marketing objectives which are usually to maximize profits (Boone et al., 2021). If the objective is to maximize profits, marketers must have a fairly accurate estimation of customer demand for their product or service at various price points. This information would likely need to be collected through marketing research. A helpful tool in this process would be marginal analysis (Cannon et al., 2020). Marginal analysis examines the changes to total revenues and costs from increased or decreased sales. That is, marginal analysis is a means for understanding the relationship between costs, revenues, and profits while factoring in changes in projected changes in consumer demand.
Cost-Volume-Profit Analysis
Guo (2022) notes that the relationship between costs, sales volume, and profits (CVP) is complex. For the best results, marketers should attempt to limit the scope of CVP analysis when possible. The article also points out that CVP analysis provides the best results when utilized for short-term operational and management decisions. That is, due to the perpetual uncertainty in the organizational environment, variables are likely to change if CVP analysis were used for long-term planning. Thus, the findings from the CVP analysis would be unreliable in the long term.
References
Boone, L. E., & Kurtz, D. L. (2021). Contemporary marketing (19th ed.). Cengage.
Cannon, J. P., William D. Perreault, J., & McCarthy, E. J. (2020). Essentials of marketing – Loose leaf (17th ed.). McGraw-Hill Education.
Guo, Y. (2022). Enterprise management decision and financial management based on dynamic cost volume profit model. Journal of Function Spaces, 1–8. https://doi-org.wmcarey.idm.oclc.org/10.1155/2022/9016060
Marketing Response 2.) Mary
here are four distribution channels used by seller’s to meet the needs and the objectives of the company to get their products into the hands of the consumer. Manufactures target which mode of distribution best fit into their scope of demographic and target markets to strategically position their products to be distributed and marketed to those areas.
Direct channel distribution is considered the shortest and most dimpliest mode of distribution as it serves as a direct channel to getting the product directly to the consumer.
Channels Using Marketing Intermediaries used as a non practical method of distribution oftentimes retailers will utilize marketing intermediaries to help them move the products from the manufacturer to the consumer more efficiently by using wholesalers, sales agents or vertical integration as a method to distribute.
Dual Distribution is how manufacturers apply more than one channel of distribution to distribute their products so that it gets to the target market that they are trying to reach.
Reverse Channels refers to the returning of previously sold merchandise that is now being sent back to the manufacturer. Reverse channels increase the cost associated with producing the product because of the cost associated with the repeat distribution and return channel of the product.
Reference
Boone, L. E., & Kurtz, D. L., (p. 311-312, 2021). Contemporary marketing. Cengage Publishing. ISBN: 9780357461709
Business Response 3.) Kimberly
I am currently still in the process of locating resources and literature that will be useful to the topic of the COVID-19 Pandemic and the effect it has had on the mental health of healthcare professionals. The amount of literature is quite a bit but it is somewhat getting to the point of saturation. Most of the information is repetitive and says about the same information. As I have said previously, I have to change my keywords to locate other information. If I keep with the same keywords, I am finding the same articles and dissertations that I have already looked over As long as I can keep researching and hopefully find information that gives at least a little useful literature, then I will continue to search and in that case, have way more resources then needed but at least then I can have it and not need it instead of needing it and not having it.
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