Please Respond To The Following Using The Internet Or 006259

Please Respond To The Followingusing The Internet Or Strayer Database

Please respond to the following: Using the Internet or Strayer databases, analyze pricing techniques for established products and services. Next, select and explain the pricing strategy you would use for a business. Within your response, you should also identify three (3) objectives this strategy seeks to achieve. Discuss four (4) strategies you could use for the development of a successful website to support a new business. Be specific in stating how these strategies will help the company achieve its goals.

Paper For Above instruction

Introduction

Pricing is a critical component of the marketing mix, directly influencing a company's profitability, market share, and competitive positioning. For established products and services, businesses employ a variety of pricing techniques tailored to their market conditions, cost structures, and customer perceptions. Analyzing these techniques reveals the strategic approaches companies utilize to maximize revenue while maintaining customer loyalty.

Pricing Techniques for Established Products and Services

One prevalent technique is cost-based pricing, where firms determine the price by adding a markup to the cost of production. This method ensures coverage of costs and a desired profit margin but may not reflect market conditions or consumer willingness to pay (Nagle, Hogan, & Zale, 2016). Another common strategy is value-based pricing, which sets prices based on perceived value to the customer rather than solely on costs. This approach often results in premium pricing for products or services that offer unique benefits (Liozu & Hinterhuber, 2013).

Competitive pricing is also frequently used, where businesses set prices in relation to competitors' prices. This strategy helps maintain market share and positioning but requires continuous market monitoring to adjust prices accordingly. Price skimming is another technique, particularly for new or innovative products, where initial high prices target early adopters, then gradually decrease to attract more price-sensitive customers (Kotler & Keller, 2016).

Pricing Strategy Selection and Objectives

For a new business, I would recommend adopting a value-based pricing strategy. This strategy aligns the price with the perceived value of the product or service to the customer, often allowing for higher margins and reinforcing the brand's positioning as providing superior benefits. Specifically, in a competitive landscape with differentiated offerings, value-based pricing can help convey quality and uniqueness.

This strategy seeks to achieve three core objectives:

  1. Maximize profit margins: By pricing based on perceived value, the business can command higher prices and improve profitability.
  2. Enhance brand perception: Premium pricing can position the brand as offering superior quality or exclusive features, attracting targeted customer segments.
  3. Build customer loyalty: Aligning price with perceived value encourages customer satisfaction and repeat business, fostering long-term relationships.

Strategies for Developing a Successful Website

1. User-Centered Design: Creating a website that is intuitive, easy to navigate, and tailored to the target audience’s preferences enhances user experience. A well-designed interface reduces bounce rates and encourages visitors to explore products or services, thereby increasing conversion rates (Nielsen, 2012).

2. Search Engine Optimization (SEO): Implementing robust SEO practices ensures the website ranks highly in search engine results. This increases organic traffic and visibility, which are crucial for attracting new customers and reducing marketing costs (Fishkin & Høgenhaven, 2013).

3. Content Marketing: Developing relevant, engaging content such as blogs, videos, and infographics establishes authority in the industry and builds trust with potential customers. Well-crafted content can also improve SEO and foster customer engagement (Pulizzi, 2014).

4. Mobile Optimization: Ensuring the website is fully functional on mobile devices caters to the increasing number of users accessing online content via smartphones and tablets. A mobile-friendly site improves usability, reduces abandonment rates, and enhances user satisfaction, directly supporting sales goals (Google, 2015).

Conclusion

Effective pricing techniques, coupled with a strategic website development plan, are essential for the success of a new business. Utilizing a value-based pricing strategy allows a business to achieve higher margins, position itself favorably in the market, and foster customer loyalty. Simultaneously, implementing user-centered design, SEO, content marketing, and mobile optimization ensures the website effectively attracts and retains customers, supporting overall business growth and profitability. These combined strategies create a cohesive approach to establishing a competitive presence in the digital marketplace.

References

  • Fishkin, R., & Høgenhaven, T. (2013). The art of SEO: Mastering search engine optimization. O'Reilly Media.
  • Google. (2015). Mobile-friendly website = better search rankings. Google Search Central. https://developers.google.com/search/mobile-friendly
  • Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.
  • Liozu, S. M., & Hinterhuber, H. H. (2013). Value-based pricing strategies: Unlocking competitive advantage. Business Strategy Review, 24(4), 44-51.
  • Nagle, T. T., Hogan, J. E., & Zale, J. (2016). The strategy and tactics of pricing: A guide to profitable decision making. Routledge.
  • Nielsen, J. (2012). User experience and website design. Nielsen Norman Group. https://www.nngroup.com/articles/website-user-experience
  • Pulizzi, J. (2014). Epic content marketing: How to tell a different story, break through the clutter, and win more customers by marketing less. McGraw-Hill Education.

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