Please type the paper in 12 font, Times new roman and a minimum of 2 full pages. Please be as detailed as possible. Please include at least 2 creditable references and please list in APA format free of errors and extra word fillers. Please include page numbers at the bottoms of each page ONLY not the top.
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The assessment instructions is a guide for the paper and please answer each bullet in the paper from the assessment portion of the instructions.
Write an analysis of place and price (the second and third “Ps” of the marketing mix) for a selected product. There is no page limit for this assessment.
Selecting the best methodology for getting a product to the targeted customer is an essential aspect of an integrated marketing plan. The establishment of value, as manifested in a product’s price, is another essential part of a successful integrated marketing program.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
- Competency 3: Examine the relationship of basic marketing strategies to business success.
- Analyze relationships between a company’s place strategies for a product and the company’s economic success.
- Analyze relationships between a company’s price strategies for a product and the company’s economic success.
- Competency 4: Apply effective marketing planning and implementation.
- Analyze a product’s distribution channels.
- Analyze where a product is being sold.
- Analyze characteristics of a product’s pricing system.
- Competency 6: Evaluate management implications of marketing and sales plans.
- Describe potential management challenges related to recommended changes to a company’s place strategies.
- Describe potential management challenges related to recommended changes to a company’s price strategies.
ContextIn contemporary marketing, timeliness is critical, given the intense competition in most markets. Many successful companies have moved to a direct sales model in order to maintain greater control and better profit margins. Selection of non-direct distribution outlets carries the sales responsibility to the retail level, as outlets provide the primary interface with each customer. For some products, distribution is now friction free (friction being the lag between demand and supply). For certain kinds of software and other digital modalities (including music), delivery can be as simple as a download to your PC: no shortage of supply and no waiting.Often, superior marketing efforts are the sole support for a higher price. The key rule in pricing is to set a price point at which your target customers will buy. If you cannot make a profit at that point, then perhaps you do not need to be in that business.As complex as pricing decisions can be, many organizations rely on three basic methodologies:
- Cost-based pricing, which takes the basic costs of the product or service and adds an acceptable profit margin.
- Value-based pricing, which attempts to set a price or value for the product to either solve a problem or save time and money.
- Competition-based pricing, which simply follows along with what the market price is on similar products
Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
- Supply chain management is an important part of a company’s distribution strategy. After reading the suggested articles in the Resources regarding REI, consider REI’s current channel and methods of distribution. How does REI use supply chain management? Does this method work well? How might it be improved?
Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.
- Business Wire, Inc. (2001, June 19). REI announces strategic business changes [Press release]. Retrieved from http://www.lexisnexis.com/hottopics/lnacademic/?ve…
- Business Wire, Inc. (2001, March 27). REI commits to youth with $100,000 award [Press release]. Retrieved from http://www.lexisnexis.com/hottopics/lnacademic/?ve…
- Marketing Power, Inc. (2013). American Marketing Association. Retrieved from http://www.marketingpower.com/Pages/default.aspx
- Hoover’s, Inc. (2013). Hoovers. Retrieved from http://www.hoovers.com
- The Ad Age Group. (2014). AdvertisingAge. Retrieved from http://adage.com
- Direct Marketing Association. (2013). DMA: Advancing and protecting responsible data-driven marketing. Retrieved from http://thedma.org
- Concept Marketing Group Inc. (2013). Concept Marketing Group. Retrieved from http://www.marketingsource.com
Analyze the place and price for a product. You can use the same product you used for the previous assessment, or you can choose another organization or product.
- Analyze distribution channels. (How does the organization get the product to market?)
- Analyze where the product is being sold and the approach to inventory.
- Analyze the relationship between the company’s place strategies for the product and the company’s economic success.
- Describe potential management challenges related to implementing the company’s place strategies.
- Analyze the pricing system for the product. Is it cost-based, value-based, or competition-based? How did you come to your determination?
- Analyze the relationship between the company’s price strategies for the product and the company’s economic success.
- Describe potential management challenges related to implementing the company’s price strategies.
- Written communication: Written communication is free of errors that detract from the overall message.
- APA formatting: Resources and citations are formatted according to current APA style and formatting.
- Font and font size: Times New Roman, 12 point.