Psychological Pricing Strategies

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CASE ASSIGNMENT

Write a paper of no more than four pages in which you complete the following assignment: Using the teaching materials and any additional research, explain what you think would be the most appropriate pricing strategy – and why – for TWO branded products selected from the following list. In doing so compare and contrast the two pricing methods explaining why you think they would be similar or different.: MEDIA DISTRIBUTOR (e.g. Netflix) FROZEN VEGETABLES ASPIRIN (or any over the counter painkiller) ASSIGNMENT EXPECTATIONS In answering this case question, aim to demonstrate your learning not only of the materials from MOD05, but also those from MOD01-04. You may well wish to illustrate your arguments using estimates of costs and other figures for the products you have chosen. In that case it is quite accetable to invent some reasonable numbers rather than takime to research them. Place any detailed calculations in an appendix, (not counted in the page limit), after the references. Please submit your case for grading by the end of this module. It is expected that you will use information from the background readings as well as the case articles and any good quality sources you can find. Please cite all sources and provide a reference list at the end of the paper. The following will be assessed in particular: Your demonstrated understanding of the marketing concepts central to the case question. Your demonstrated understanding of factors related to the development of an effective pricing method through the analysis you conduct in the context of the case.

Module 5 reading material:

Having developed an understanding of how consumers make purchase decisions, and how marketers analyze markets and select targets, we turn our attention in Modules 02-05 to how firms can win and retain customers and here in Module 05 we focus on the final element of the Marketing Mix, Price, what it costs the customer to own our product.  Note that this conception of Price, rather than “What we charge the customer”, more usefully represents the customer-oriented perspective taken by marketers.

This raises a number of questions such as:

• What alternative approaches are available to marketers to price products?
• What factors do marketing managers take into account when setting a price?

The materials on this page as well as in the case have direct relevance to those questions and the fifth and final part of your SLP.

For both the case and the SLP, the following materials have been provided:

Resources for all modules:

1. The course designer has prepared background materials for each module that can be accessed through the presentations link at the top of each page.

2. An extensive glossary of marketing terms can be accessed at

Marketing Power Dictionary (2011). American Marketing Association.. Available May 31, 2013 at

http://www.marketingpower.com/_la

3. The following reference covers a range of marketing topics:

Marketing Made Simple. (n.d.). Available May 31, 2013 at

http://www.marketing-made-simple.com/

Module 5 Readings

Christ, P. (2011). Principles of Marketing. Available August 30, 2012 from KnowThis.com. Review the following chapters: 

• Pricing Decisions
• Setting Price

Available May 31, 2013 at 

http://www.knowthis.com/principles-of-marketing-tutorials/

Rev. May 31, 2013