Reference no: EM133198332 , Length: 2 pages.

Assignment: Marketing Pricing Activity

I. First: you will need to read the chapter on pricing in order to understand the possible pricing strategies that exist

II. Next, choose a specific product or service (e.g., a given movie, a specific kind of hair cut (e.g., shampoo + cut), a specific airline flight, a given smartphone, etc)

III. Look at the pricing for the same or similar products for at least 5 competitors (if possible)

i. For example, what is the price for a flight between Boston to Budapest on November 18 to November 24 for American Airlines vs. United vs. Lufthansa, etc?

ii. For a product, what is the price at Amazon vs. Wal-Mart vs. Target, etc?

iii. For a movie, can you find different theaters that have different prices for the same movie? If the movie is already released, can you find different rental costs across providers? What about the cost of the same movie across time (e.g., theater vs. just released vs. a year later)?

iv. The point: there are many possible ways to analyze and then understand pricing strategies. You can get creative here

IV. Your goals: (a) Analyze and attempt to identify the pricing strategy (or strategies) used for this product or service. (b) Support your analysis with evidence (e.g., citations where you saw the pricing or got your information - similar to the Macroenvironment Analysis). The following list should help you think about the product/service and its pricing and what I'm looking for:

i. What type of pricing strategy (or strategies) seems to exist for this product/service? Support your claim with evidence

ii. For example, do they use geographical pricing? Dynamic pricing? Segmented? Discounts? And so on. There are many directions to go with pricing strategies

iii. What factors might have affected the decision by the companies in setting their price? Why?

iv. If there are additional options, bundles, or you are looking at "captive" products, why might these exist within this particular market?

V. Considering the following factors may also help you

i. Cost structures - amount of overhead, variable costs, etc

ii. Market structure - is it a highly competitive market vs. oligopoly, etc?

iii. Product mix - does the company offer different features compared to other companies? Might higher prices for one product make up for lower prices for another product?

iv. Quality of the product

v. Special offers

vi. Time of year.