Identify The Four Strategies For Pricing And The Sales Objec

Identify The Four Strategies For Pricing And The Sales Objective For E

Identify the four strategies for pricing and the sales objective for each. Which strategy do you feel is the most effective? Support your answer. (200 words) 2. What are the two types of wholesalers and the benefits that each afford? What connection do they have to the producer, and what advantages do the producers and wholesalers gain using these strategies? (200 words) 3. What are the elements that influence consumers’ decision-making? Provide an example of a product that influences senior men or women? Support your answer. (200 words) 4. What is utility? In what ways can utility affect the market? Support your answer. (200 words) NEED IN-TEXT CITATION Reference: Kelly, M., & McGowen, J. (2012). BUSN 4. Mason, OH: South-Western.

Paper For Above instruction

The four primary strategies for pricing are cost-based pricing, competition-based pricing, value-based pricing, and psychological pricing. Cost-based pricing involves setting prices through adding a markup to the cost of production, ensuring coverage of expenses and profit margins. Competition-based pricing sets prices aligned with competitors’ pricing, aiming to maintain market share. Value-based pricing emphasizes the perceived value to the customer, often allowing for premium pricing when products or services offer unique benefits. Psychological pricing employs tactics like setting prices just below a round number (e.g., $9.99) to influence consumer perception and encourage purchases.

Among these, value-based pricing is often considered the most effective because it aligns price with customer perception of value, fostering customer loyalty and allowing companies to maximize revenue based on perceived benefits rather than solely on costs or competitors' prices (Kelly & McGowen, 2012). While cost-based pricing guarantees coverage, it may not exploit consumers' willingness to pay higher prices for perceived value. Competition-based pricing can lead to price wars, eroding profits, and psychological pricing may lack transparency. Therefore, value-based pricing offers strategic advantage by focusing on consumer perception, which can enhance long-term profitability and brand loyalty.

The two main types of wholesalers are merchant wholesalers and agent/broker wholesalers. Merchant wholesalers purchase products outright and resell them, providing benefits like bulk purchasing power and inventory management efficiencies, which reduce production costs for manufacturers (Kelly & McGowen, 2012). Agent or broker wholesalers do not take ownership of goods but facilitate sales and transactions, offering benefits such as market expansion and access to new customer bases without the risks associated with inventory. These structures directly connect producers with markets, allowing producers to concentrate on manufacturing while wholesalers handle distribution logistics. Producers gain advantages like expanded reach and reduced distribution costs, while wholesalers benefit from commission-based income and access to supply sources. This mutually beneficial relationship enhances supply chain efficiency and market penetration for both parties.

Consumers' decision-making is influenced by factors such as psychological influences, social influences, personal preferences, and economic factors. Psychological influences include perception, motivation, beliefs, and attitudes, shaping how consumers interpret product information (Kelly & McGowen, 2012). Social influences involve reference groups, family, and social status, affecting purchase choices. Personal preferences involve age, lifestyle, and gender, which tailor product appeal. Economic factors like income level and perceived value also guide decisions. For example, a senior woman might be influenced by health-related features of a product like a nutritional supplement designed specifically for her needs. Such products are marketed emphasizing health benefits, ease of use, and reliability, which resonate with her priorities for maintaining well-being and independence (Kelly & McGowen, 2012). Understanding these elements allows marketers to tailor marketing strategies effectively to different demographic segments.

Utility refers to the satisfaction or benefit that consumers derive from using a product or service. It plays a critical role in driving consumer choices and shaping demand. Utility can be categorized into form, place, time, and possession utility. Form utility involves transforming raw materials into finished products that meet consumer needs. Place utility ensures products are available where consumers want to buy them. Time utility involves providing products when they are needed, such as seasonal items. Possession utility facilitates the transfer of ownership, making it easier for consumers to purchase (Kelly & McGowen, 2012). Utility affects the market by influencing consumer preferences and purchasing behavior; higher utility increases demand, enabling firms to set higher prices and generate greater revenues. Effective marketing strategies that enhance utility can lead to competitive advantages and market growth.

References

• Kelly, M., & McGowen, J. (2012). BUSN 4. Mason, OH: South-Western.
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