Distribution
•Identify the most effective methods for getting products/services to customers in the target market.
•Identify need for warehousing of products and for distribution channels if not sold direct to buyer.
•Review the following four-step process for setting a price. ◦Establishing pricing goals
◦Estimate demand, costs, and profits
◦Choose a price strategy
◦Fine-tune with pricing tactics
◦Enter values into table
•Be sure all products/services carry their share of expenses plus provide for profit.
•Compare prices for your products/services with similar products/services in the industry. ◦If your prices will be higher, they need to provide the necessary "added value" to justify.
◦If your prices are lower, explain why in terms of your marketing strategy.
Website Sales
•What price would you sell your products on your web-site?
•What would be the profit for each pie you sell online? ◦(Be sure to include a discussion of other costs, such as the website, shipping and packaging).
•What marketing strategy would affect your decision?
Alternate Sales Venues/Price
•If you sold 1,000 units (pies) to a convenience store instead of the website, would that change your pricing? Why or why not?
•What price would you charge to sell 2,000 pies individually on the street, at a food fair or on eBay?
•What marketing strategies would you consider for lowering your costs for alternative sales venues?
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