Bus 330 Principles Of Marketing Week 3 Journal 001326

Bus 330 Principles Of Marketingweek 3 Journalweek 3 Journalbrand And

Bus 330 Principles of Marketing Week 3 Journal: Brand and Product or Service Name, Pricing Strategy, and Rationale from Table 5.3, along with specific examples such as Royal Treatment Pet grooming and pet spa services, Custom-made Converse Shoes, three restaurants’ course dinner menus on Valentine’s Day, PearlsAndLavender jewelry, Southwest Airlines, and off-season hotel room pricing.

Paper For Above instruction

The third week of the Principles of Marketing course emphasizes understanding branding, products, and services, alongside selecting appropriate pricing strategies. This paper explores various brand and product offerings, analyzes suitable pricing strategies based on Table 5.3, and provides rationales for each selection, incorporating real-world examples to illustrate these concepts.

Brand and Product/Service Overview

Royal Treatment Pet offers grooming and spa services specifically designed for dogs and cats. It aims to provide premium care, emphasizing a luxury experience for pet owners who are willing to invest in the well-being of their pets. Custom-made Converse Shoes caters to consumers seeking personalized footwear that reflects their individual style, also positioning itself as a premium or specialty product. Conversely, PearlsAndLavender provides handmade ceramic and brass jewelry, appealing to consumers seeking artisanal, unique accessories. Three local restaurants offer a multi-course dinner menu on Valentine’s Day each year, targeting special occasions and romantic dining experiences. Southwest Airlines, recognized as the world’s largest low-cost carrier, offers affordable air travel with a focus on cost efficiency. Additionally, hotel room pricing during the off-season on weekdays exemplifies a pricing strategy aimed at maximizing occupancy during periods of low demand.

Pricing Strategy Selection and Rationale

Selecting appropriate pricing strategies is vital for positioning each brand competitively in the market, attracting the target audience, and maximizing revenue. Table 5.3 provides a categorization of pricing strategies such as cost-based, value-based, competition-based, and psychological pricing. Each example is matched with a suitable strategy based on its target market, brand positioning, and customer perceptions.

Royal Treatment Pet: Premium Pricing Strategy

Royal Treatment Pet employs a premium pricing strategy. Luxury pet grooming and spa services are positioned as exclusive, high-quality offerings. Consumers willing to pay more for specialized services and superior care fit with a premium approach. According to Kotler and Keller (2016), premium pricing enhances perceived quality and exclusivity, reinforcing brand image among affluent pet owners. The rationale stems from the desire to establish Royal Treatment Pet as a high-end provider, capturing increased margins and fostering loyalty through perceived exclusivity.

Custom-made Converse Shoes: Value-Based Pricing

Custom-made Converse Shoes utilize a value-based pricing strategy. Personalized footwear offers unique style and self-expression, creating value for consumers beyond the cost of production. As Nagle, Hogan, and Zale (2016) note, value-based pricing reflects customers’ perceptions of product utility. This strategy allows the brand to command higher prices consistent with the bespoke nature of the shoes while reinforcing the perception of uniqueness and personal significance.

PearlsAndLavender Jewelry: Artisanal and Psychological Pricing

PearlsAndLavender employs a combination of artisan pricing and psychological pricing strategies. Handmade jewelry often carries a higher perceived value due to craftsmanship and uniqueness. Psychological pricing (e.g., $99 instead of $100) can influence consumer perception of affordability and value, a concept supported by Monroe (2013). This approach aligns with consumers seeking artisanal, exclusive items, enabling the seller to price above mass-produced jewelry while appealing to emotional and aesthetic considerations.

Restaurants’ Valentine’s Day Menus: Promotional and Prestige Pricing

The three restaurants offering special Valentine’s Day menus use promotional and prestige pricing. Promotional pricing involves offering fixed-price multi-course dinners to attract diners seeking holiday experiences, encouraging increased patronage during an otherwise slow season. Prestige pricing complements by positioning these menus as premium, romantic options, attracting couples looking for memorable experiences. Kapferer (2015) emphasizes that such strategies can enhance perceived value through exclusivity and special occasion positioning, driving higher sales on key dates.

Southwest Airlines: Cost-Plus and Competition-Based Pricing

Southwest Airlines applies a combination of cost-plus and competition-based pricing strategies. As a low-cost carrier, Southwest focuses on minimizing operational costs to maintain low ticket prices while remaining competitive against other airlines. According to Samel (2010), cost-based strategies are essential for price leadership in highly competitive markets. Southwest's emphasis on efficiency and cost control supports this approach, enabling affordability while maintaining profitability.

Off-Season Hotel Room Pricing: Dynamic and Yield Management Strategies

Off-season hotel pricing exemplifies dynamic and yield management strategies. By adjusting prices downward during low-demand periods, hotels optimize occupancy rates and revenue. This approach is supported by Kimes (2011), who advocates for flexible pricing strategies based on demand forecasts. Hotels target price-sensitive customers during off-peak times while maximizing revenue with limited demand.

Conclusion

Each of these brands and services employs a distinct pricing strategy tailored to its target market, brand positioning, and service or product characteristics. Premium pricing for luxury pet services, value-based for personalized shoes, artisanal and psychological for jewelry, promotional and prestige for holiday menus, cost and competition-based for airlines, and dynamic for hotels, illustrate the diversity of strategic pricing approaches. Proper alignment of pricing strategy with brand positioning enhances market competitiveness, customer perception, and financial performance.

References

  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
  • Nagle, T. T., Hogan, J. E., & Zale, J. (2016). The Strategy and Tactics of Pricing: A Guide to Growing More Profitably. Routledge.
  • Monroe, K. B. (2013). Pricing: Making Profitable Decisions. Routledge.
  • Kapferer, J.-N. (2015). The New Strategic Brand Management: Advanced Insights and Strategic Thinking. Kogan Page.
  • Samel, D. (2010). Low-Cost Carriers Take the Flight. Journal of Airline and Airport Marketing, 12(3), 45-59.
  • Kimes, R. (2011). The Future of Hotel Revenue Management. Cornell Hospitality Quarterly, 52(2), 124-134.
  • Hollensen, S. (2015). Marketing Management: A Relationship Approach. Pearson.
  • Piggot, W., & Chua, S. (2017). Understanding Consumer Behavior. Wiley.
  • Smith, P. R., & Zook, Z. L. (2011). Marketing Communications: Integrating Offline and Online, Packed with Insight. Kogan Page.
  • Cheng, J. M. S. (2018). The Impact of Occasion and Price on Consumer Purchase Intentions. Journal of Consumer Psychology, 28(4), 566-578.

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