Reference no: EM132816144
MKT501 Marketing - Charles Sturt University
Margins & Sales Volume
Different industries have varied benchmarks for margins. For example in restaurants alcohol margins are usually much higher than food margins. In other industries, margins are affected by seasonal demand.
Industry Research and Application
Research your product/service's industry with regard to mark-ups and contribution margins.
• Describe the industry for a small business cigar lounge: Bon Temps Cigar Lounge
Product Introduction / Description below:
The Bontemps Cigar Lounge is a busines that is all about providing an environment and atmosphere for the cigar novice, enthusiast, or connoisseur to enjoy a fine cigar, relax, network, and mingle while being afforded the opportunity to learn about, sample and purchase cigars and other accessories.Bontemps Cigar Lounge is an organization that is open to provide a select clientele the comfort of a place where they can come to purchase cigars, enjoy a good smoke and an alcoholic drink. We have a large selection of quality cigars that are maintained in our large walk-in humidor. The customer service associate is knowledgeable and will be able to help you with making a good selection.
• Discuss the margins and markups on goods or services based off pricing write of project below:
At Bon Temps Cigar Lounge, Cigar pricing will range between $7 on the low end and $37 on the high end, and prices will be relevant to name brand, size, strength/type, and rating. Membership of $150 + tax monthly which includes $75 monthly credit towards instore cigars bringing actual cost down to $75 for membership, personalized humidified cigar locker, personalized bottle locker to store your spirits, unlimited access to luxury cigar lounge (Flat Screen TV & Pool Table) and conference room, free high-speed Wi-Fi access during hours of operation. This represents a guarantee of $75 in cigars a month per member. All prices are subject to change based on market demands and manufacturers pricing. Lounge is open to all purchasing customers. However, can be made available for rental of private events by mem
bers. Military, veterans, first responder and law enforcement will receive a 10% discount on all purchases. Specialty Orders - if you are looking for a cigar that we do not carry in stock, will we will make every effort reasonable to research and order the item, depending on demand. Utilization of the Profit Pricing Objective when setting these prices, the business has to consider what does the customer think a product is worth? What are they willing to pay for the product? What does it cost the business to provide requested product? (Open Textbooks for Hong Kong, N.D)
• Discuss other economic factors that affect the mark-ups: Cash available, Inflation, National Unemployment Rate / Disposable Income etc
• What marketing techniques can companies use to support the pricing schemes that support their margins?Explain how Pricing Schemes, and Marketing Techniques will be used to ensure adaptation of an appropriate marketing techniques that supports the pricing scheme and margins. Give a sample of the following pricing techniques
Penetration pricing:
Economy pricing:
Product line pricing:
Promotion pricing:
Premium items pricing:
Use research from quality graduate-level resources and at least two articles from Trident Library's full-text databases like (Academic Search Complete, Business Source Complete and/or Proquest Central). Stay away from consultant sites on the internet.
Do not use any quotations. Since you are engaging in research, be sure to cite and reference the sources in APA format. The paper should be written in third person; this means words like "I", "we", and "you" are not appropriate. For more information see Differences Between First and Third Person.
Use the attached APA-formatted template
Attachment:- Marketing Management.rar