Reference no: EM132282040
Assignment: Write an analysis of place and price (the second and third "Ps" of the marketing mix) for a selected product. 3 pages
Selecting the best methodology for getting a product to the targeted customer is an essential aspect of an integrated marketing plan. The establishment of value, as manifested in a product's price, is another essential part of a successful integrated marketing program.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
1. Competency 3: Examine the relationship of basic marketing strategies to business success.
• Analyze relationships between a company's place strategies for a product and the company's economic success.
• Analyze relationships between a company's price strategies for a product and the company's economic success.
2. Competency 4: Apply effective marketing planning and implementation.
• Analyze a product's distribution channels.
• Analyze where a product is being sold.
• Analyze characteristics of a product's pricing system.
3. Competency 6: Evaluate management implications of marketing and sales plans.
• Describe potential management challenges related to recommended changes to a company's place strategies.
• Describe potential management challenges related to recommended changes to a company's price strategies.
In contemporary marketing, timeliness is critical, given the intense competition in most markets. Many successful companies have moved to a direct sales model in order to maintain greater control and better profit margins. Selection of non-direct distribution outlets carries the sales responsibility to the retail level, as outlets provide the primary interface with each customer. For some products, distribution is now friction free (friction being the lag between demand and supply). For certain kinds of software and other digital modalities (including music), delivery can be as simple as a download to your PC: no shortage of supply and no waiting.
Often, superior marketing efforts are the sole support for a higher price. The key rule in pricing is to set a price point at which your target customers will buy. If you cannot make a profit at that point, then perhaps you do not need to be in that business.
As complex as pricing decisions can be, many organizations rely on three basic methodologies:
1. Cost-based pricing, which takes the basic costs of the product or service and adds an acceptable profit margin.
2. Value-based pricing, which attempts to set a price or value for the product to either solve a problem or save time and money.
3. Competition-based pricing, which simply follows along with what the market price is on similar products.
For this assignment, consider that you work as a marketing analyst for a consulting firm. You were previously asked to develop an analysis white paper to be used for marketing purposes to showcase the firm's consulting capabilities, and your manager and the firm's marketing team was impressed with your work. As a result, your manager asked you to create another analysis white paper to also be used for marketing purposes, with a goal of highlighting the firm's consulting capabilities for each of the "four Ps" of product, place, price, and promotion.
Analyze the place and price for a product. You can use the same product you used for the previous assessment, or you can choose another organization or product.
Place Analysis
• Analyze distribution channels (how does the organization get the product to market), and assess strengths and potential weaknesses.
• Analyze where the product is being sold and the approach to inventory, and assess strengths and potential weaknesses of the place of sale.
• Analyze the relationship between the company's place strategies for the product and the company's economic success and propose potential changes in the place strategies that could improve the company's economic success.
• Describe potential management challenges related to recommended changes to the company's place strategies, and assess how those challenges might be addressed.
Price Analysis
• Analyze the characteristics of a product's pricing system, including if it is cost-based, value-based, or competition-based. How did you come to your determination? Assess strengths and weaknesses of the pricing system.
• Analyze the relationship between the company's price strategies for the product and the company's economic success. Propose potential changes in the price strategies that could improve the company's economic success.
• Describe potential management challenges related to recommended changes to the company's price strategies, and assess how those challenges might be addressed.
Based on your executive audience, your case study should be well organized and written in clear, succinct language. Follow APA rules for attributing sources that support your analysis and conclusions.