Classwork 8, Mariia Ochichenko

1. Selection of pricing method is one of the stages in the

original price-setting process. Describe pricing
methods that you know
 Penetration pricing
It’s difficult for a business to enter a new market and immediately
capture market share, but penetration pricing can help. The penetration
pricing strategy consists of setting a much lower price than competitors
to earn initial sales. These low prices can draw in new customers and
divert revenue from competitors.
 Skimming pricing
Businesses that charge maximum prices for new products and gradually
reduce the price over time follow a price-skimming strategy. In this type
of pricing strategy, prices drop as products end their life cycle and
become less relevant. Businesses that sell high-tech or novelty products
typically use price skimming.
 High-low pricing
High-low pricing is similar to skimming, except the price drops at a
different rate. With the high-low pricing method, the price of a product
drops significantly all at once rather than at a gradual pace. Retail
businesses that sell seasonal products typically use a high-low strategy,
often using a promotion to clear stock they won’t be able to sell for
much longer
2.    The company X is a manufacturer of outer
clothing for men. What distribution systems will be more appropriate to
make the sales process more effective and to get the most control over the
distribution channel?
Direct sales distribution method will be the most appropriate in this
situation. This type of distribution system is right for products that are
neither too expensive nor too cheap. The price of products falls in the
middle range and are not bought by consumers on an everyday basis.
For example, a person will purchase outer clothing once in 2 or more
years.
The benefit of using direct sales is that manufacturers get a chance to
connect with customers directly. Manufacturers can learn about their
needs and demands, and use the information obtained from them to
modify their products to serve their customers better.
3.    Describe the growth strategies based on Ansoff’s
matrix. What do you think of the strategies that are the
riskiest?
The four Ansoff Matrix growth strategies are market penetration,
product development, market development, and diversification.
Market penetration attempts to expand the sales volume of your
current products in their current markets, thus increasing your market
share. The aim is to encourage brand loyalty and customer retention,
perhaps by increasing brand awareness via your marketing strategy,
implementing more product/brand promotion, or having more
competitive pricing.
Product development is considered slightly more risky as you’re
introducing something new to your existing brand. It’s important to note
here that product refers to services too, rather than just physical
commodities - whatever is being sold is considered a product.
Marketing development brings an existing product into a new or
developed market. It expands the current market to reach more customers
or repurposes the product to suit entirely new customers.
It’s a 2-step process to reach an unexplored market. Begin by conducting
extensive market research to identify market segments - small sections of
people in a larger population that can be grouped by labels. 
Diversification is the riskiest of the four options. This is when you
introduce a new, unproven product into an entirely new market. It’s
creating a strategy that targets customers whom you usually don’t cater
to, offering a product that you don’t have experience in.
 Classwork 8, Mariia Ochichenko
4.    What methods of the quantitative quantitative data through systematic observations by using techniques like
research is used for the primary data collection? counting the number of people present at the specific event at a particular
Probability sampling method time and a particular venue or number of people attending the event in a
designated place.
There are three significant types of probability sampling
 Simple random sampling: More often, the targeted demographic
is chosen for inclusion in the sample. 
 Systematic random sampling: Any of the targeted demographic
would be included in the sample, but only the first unit for
inclusion in the sample is selected randomly, the rest are selected
in the ordered fashion as if one out of every ten people on the list. 
 Stratified random sampling: It allows the selection of each unit
from a particular group of the targeted audience while creating a
sample.
Interviews
Interviewing people is a standard method used for data collection.
However, the interviews conducted to collect quantitative data are more
structured, wherein the researchers ask only a standard set of
questionnaires and nothing more than that.
Surveys/questionnaires
Surveys or questionnaires created using online survey software are playing
a pivotal role in online data collection be is quantitative or qualitative
research. The surveys are designed in a manner to legitimize the behavior
and trust of the respondents.

Observations

As the name suggests, it is a pretty simple and straightforward method of

collecting quantitative data. In this method, researchers collect