It is very important to make sure that you align your pricing strategy with your target market and branding strategy. Below are various businesses and pricing strategies.
Match each business with the pricing strategy that you believe the business is using.
Discuss why you think the business is using the pricing strategy that you did.
Business:Pricing Strategy:
Bentley Motors
Motorola
Kohl's
Dish Network
Strategies
Penetration Pricing
Pricing Skimming
Premium Pricing
Competitive Pricing
Economy Pricing
Promotional Pricing
Full Answer Section
Bentley Motors is a luxury car brand that produces high-end vehicles. Their pricing strategy is premium pricing, which means that they charge a higher price for their products than their competitors. This is because they target a high-income market that is willing to pay more for luxury goods.
Motorola is a telecommunications company that produces smartphones, tablets, and other devices. Their pricing strategy is penetration pricing, which means that they charge a lower price for their products in order to gain market share. This is because they target a mass market that is price-sensitive.
Kohl's is a department store that sells a variety of products, including clothing, home goods, and electronics. Their pricing strategy is value pricing, which means that they offer good value for money. This is because they target a middle-income market that is looking for affordable products.
Dish Network is a satellite television company that offers a variety of channels and services. Their pricing strategy is skimming pricing, which means that they charge a high price for their products at first and then lower the price over time. This is because they target a high-income market that is willing to pay more for the latest technology.
Here are the reasons why I think the businesses are using the pricing strategies that I did:
- Bentley Motors is a luxury brand, and their customers are willing to pay a premium price for their products. They also have a high profit margin, so they can afford to charge more.
- Motorola is a mass-market brand, and their customers are price-sensitive. They need to offer a competitive price in order to attract customers.
- Kohl's is a department store that targets a middle-income market. They need to offer good value for money in order to compete with other department stores.
- Dish Network is a satellite television company that offers a premium product. They need to charge a high price in order to recoup their investment in the technology.
It is important to align your pricing strategy with your target market and branding strategy. This will help you to attract the right customers and achieve your business goals.