Linking Marketing And Pricing Strategy And Answer

Linking Marketing and Pricing Strategy and Answer

Week 6 Discussion read The linking Marketing And Pricing Strategy and Answer. Week 6 Discussion read The linking Marketing And Pricing Strategy and answer the following questions: Your marketing strategy must be tightly linked with marketing tactics, specifically considering the four Ps — product, price, promotion, and place. A successful marketing strategy hinges on proper execution of these elements, especially pricing. Understanding what a marketing strategy entails is essential. It involves two key choices: which part of the overall market to target and how to position your offering to beat the competition. The market is divided into four segments: loyal customers, competitor-only customers, multi-brand customers, and non-category potential customers. Focusing resources on one segment at a time, based on potential financial returns, is a core principle. As such, pricing strategies vary depending on target segments. For non-category users, price should reflect the total perceived value minus any costs to the customer, often supported by introductory discounts. For loyal customers, value-based pricing with occasional discounts fosters loyalty. When targeting customers who prefer competitors’ products, pricing should be set relative to competitors—higher if the product offers more value, lower if less, or equal if identical—making price a clear indicator of value in the customer’s decision-making process.

Paper For Above instruction

Linking marketing and pricing strategies is critical in developing an effective marketing plan. A cohesive strategy ensures that pricing decisions reinforce the overall market positioning and target customer segments, ultimately influencing consumer behavior and adoption rates. This paper explores how different pricing strategies influence consumer acceptance of new products and proposes actionable ideas for enhancing logistics and profitability in a retail context that combines online and physical storefronts.

Effective pricing strategies are vital for encouraging consumer adoption of new products. Among these, target-return pricing, which focuses on setting a price aimed at achieving specific financial goals like return on investment (ROI), stands out as particularly beneficial. According to Kotler and Keller (2016), target-return pricing allows firms to determine a price that covers costs and delivers desired profit levels, creating a clear financial target. Bhasin (2018) points out that this approach considers market conditions—demand fluctuations and competitive pricing—ensuring the product’s price is aligned with market realities.

Two ways in which this pricing approach can affect consumer adoption are through perception and accessibility. First, target-return pricing signals to consumers that the product's value justifies its price, building trust and acceptance, especially when the price is set above competitors for higher-quality offerings. Second, by consciously pricing competitively or based on perceived value, businesses can lower barriers to trials, making consumers more willing to try new offerings, which can accelerate adoption rates. A well-structured target-return strategy balances profitability with consumer perception, fostering faster product acceptance.

Rationale for this includes its responsiveness to market dynamics and its ability to balance profit objectives with consumer value perceptions. When consumers perceive that a product offers good value for its price, they are more likely to adopt it. Additionally, setting strategic prices aligned with desired returns ensures that marketing efforts are financially sustainable and can support ongoing promotional campaigns or innovation investments, further encouraging consumer engagement.

To improve logistics and increase profitability in a brick-and-mortar store with an online storefront, two strategies can be highly effective. First, integrating a mobile application that connects in-store and online shopping experiences. This app could enable customers to place orders remotely and pick up in-store, reducing delivery costs and increasing foot traffic. Cross-promotions between physical and online channels, such as exclusive discounts for app users who visit the store, can enhance customer engagement and sales volume. Second, optimizing inventory management through data analytics and real-time stock tracking improves order fulfillment efficiency. Implementing automated inventory systems prevents stockouts or overstocking, reducing storage costs and enhancing cash flow. Both strategies leverage technology to streamline operations, enhance customer experience, and boost profitability.

References

• Bhasin, S. (2018). Target Pricing. Retrieved from https://www.marketing91.com/target-pricing/
• Kotler, P., & Keller, K. L. (2016). Framework for Marketing Management (6th ed.). Pearson Education.
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• Zorzini, C. (2018). How to Build an Ecommerce Presence for Your Brick and Mortar Store. Retrieved from https://www.shopify.com/blog/ecommerce-presence
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