HBM222/350N MARKETING PLANNING.

TUTORIAL 7
The assigned students need to address the following questions during their presentation: Presentation 11

1. Select a particular business or industrial product and research the company’s
pricing strategy answering the questions given below:  What benefits does this product appear to offer to business customers?  What initial and ongoing costs would business customers perceive in connection with buying and maintaining this product?  If the product is new, what pricing strategy is the company using to launch it? Why is this pricing approach appropriate for the product?  How does the price reflect the product’s positioning and other marketing mix decisions?  How does the price of its nearest competing or substitute product appear to reflect that product’s value (from the customer’s perspective)? If you were a customer, would you place a higher value on this competing product than on the product you have been researching? Why? Presentation 12

1. Explain the meaning of a skimming price strategy for new
products, stating its advantages and disadvantages. Give relevant examples to support your explanation.

2. Explain the meaning of a penetration price strategy for new
products, stating its advantages and disadvantages. Give relevant examples to support your explanation.

3. Faced with the challenge of a retailer’s generic product competing
head-to-head on supermarket shelves at a 30 percent price advantage, what strategies should a market leader pursue? (Hint – look at Coles/Woolworths supermarkets ) Short Case This weeks’ case is Miele. Refer to Blackboard for the case and questions. Please read the case and consider each question PRIOR to class.

MT 7/2010

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