Wednesday, January 16, 2019
Pricing Strategy and Channel Distribution Essay
Pricing Strategy and Channel Distribution precedential Concierge serve Kelly Spino Strayer University Dr. Robert Badowski Abstract Determine and discuss a determine scheme (penetration or sliver). Determine and discuss pricing tactics (product line pricing, nurture pricing, polarial pricing, or competing against private brands) to be apply for your product. Identify both legal and ethical issues related to the pricing tactics. Prep ar a selling diffusion channel analysis identifying the wholesaler, distributor, and retailer relationships.Discuss how the distribution dodging fits the product/ helping, target market, and overall marketing objects for the confederation. As a utility business, Senior Concierge Service will offer non medical c ar and sustenance for senior citizens and their families. This type of dish business does not have legion(predicate) competitors, and pricing is consistent among the senior care industry. The pricing strategy for Senior Concierge S ervice will be to stay within the normal stove for its operate.Consumers will choose Senior Concierge Service over the competition not by constitute, but by the quality of operate offered. Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, and then the price is dishonored over time. This is a sport of price discrimination. Price skimming allows a business to recover its resources right away before a competitor moves in and lowers their prices, lowering the market price. The documental of a price skimming strategy is to capture the consumer surplus. on that pointedness are several potential problems with this strategy.It is effective only when a business is go about an inelastic demand curve (demand that is not very sensitive to a change in price). Skimming encourages the gate of competitors. Penetration pricing is a more(prenominal) suitable strategy in this case. This strategy is a pricing technique of setting a relatively low initial entry price, a good deal lower than the market price, to attract new customers. This strategy works on the probability that customers will switch to the new business beca social function of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market hare or sales volume, rather than to crop profit in the short term. This bottom spot the competition by surprise, not giving them time to react. It can also constitute grace of God among the early customer segment. This can create more trade with word of mouth. Ethical thinking is responding to situations that deal with principles concerning human behavior in respect to the appropriateness and inappropriateness of certain communication and to the decency and indecency of the end and tops of such actions (distinctions between right and wrong).Marketers are ethically responsible for what is marketed and the take care that a product portrays. Marketers need to understand what not bad(predicate) ethics are and how to incorporate good ethics in various marketing campaigns to fall apart reach a targeted audience and to gain trust from customers. (Wikipedia. com) Unethical or controversial marketing strategies include bait and switch, profit scheme, intend obsolescence, lock-in/ homage schemes, viral marketing, and, monopolies/oligopolies.In retail sales, a bait and switch is a form of dupery in which the party putting forth the fraud lures in customers by advertising a product or service at an unprofitably low price, and then reveals to potential customers that the advertised good is not available but that a substitute is. A pyramid scheme is a non-sustainable business model that involves the exchange of money in the main for enrolling other people into the scheme, without any product or service beingness delivered. Pyramid schemes are a form of fraud.The scheme collapses when no more people are willing to join the pyramid Planned obsolescence is the transit of a product becoming obsolete or non-functional after a certain period or amount of use in a way that is planned or designed by the manufacturer. The purpose of planned obsolescence is to hide the real cost per use from the consumer, and charge a higher(prenominal) price than they would otherwise be willing to pay, or would be indisposed to slip by all at once. For industries, planned obsolescence stimulates demand by supporting purchasers to buy sooner if they still want a functioning product.In business, vendor lock-in or customer lock-in, makes a customer dependent on a vendor for products and services, unable to use another vendor without actual switching costs. Lock-in costs which create barriers to market entry may result in antitrust action against a monopoly. Loyalty programs include patronise flier miles or points systems associated with credit card offers that can be used only with the original company, creating a perceiv ed loss or cost when switching to a competitor.Most programs are able to get consumers to spend more money just to get to free or support item. Viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness. It can be word-of-mouth delivered or enhanced by the network effects of the Internet. Monopolies and oligopolies practically use anti-competitive practices, which can have a negative impact on the economy. This is why company mergers are often examined closely by organization regulators to avoid reducing competition in an industry.Since this business caters to seniors and their families, it is especially grave for Senior Concierge Services to represent quality, value and confidence in its services and staff. The success of this company depends on compassionate, trust worthyy, conscientious, and ethical care givers providing non-medical in-home care. A different take on the loyalty program woul d allow customers to receive a discount after x amount of service visits or when prepaying for quaternary services. A marketing distribution channel analysis is a direction used to transfer merchandise from the manufacturer to the end user.An intermediary in the channel is called a middleman. Channels normally range from two-level conduct without intermediaries to five-level convey with three intermediaries. Intermediaries in the channel of distribution are used to despatch the delivery of the merchandise as strong as to transfer title, payments, and cultivation about the merchandise. Distribution describes all the logistics involved in delivering a companys products or services to the right place, at the right time, for the lowest cost. For many products and services, their manufacturers or providers use multiple impart of distribution.Well-chosen channels constitute a significant competitive advantage, while poorly conceived or chosen channels can doom even a top-flight pr oduct or service to failure in the market. Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. There have also been some innovations in the distribution of services, such as an increase in franchising and in rental services. There has also been some indication hat service integration can benefit many providers. Senior Concierge Services will look to consort with other service providers to create a mutually beneficial arrangement. aesculapian providers, beauticians, landscapers and general contractors would all be a good fit with the services offered. A distribution strategy defines how a business is going to create and satisfy demand for its products how a business is going to move products from point of creation to points of consumption, in a cost-effective manner as well as defining how a business is going to m anage its brand.at onces customers shop and buy very differently than ever before. admission price to high-quality information, via the internet, combined with their heightened price sensitivity, has created customers that are more sophisticated, better informed and often times, more demanding than customers of the past. A distribution strategy must be in sync with how the customers of Senior Concierge Service want to shop for services. Franchising is an option worth considering. For a fee, a small business owner can take advantage of the marketing research completed at the corporate level.