Question

Discussion Post Chapter 11: Pricing Strategy

Instructions

Write a post for the Discussion Forum on this topic, addressing the questions below. You may use either a written paragraph or bullet-point format. Part 1 should be 2–3 paragraphs in length or an equivalent amount of content in bullet-point form. Responses to your classmates’ posts should be 1–2 paragraphs or several bullet points in length.

Part 1: Pricing Strategy

Briefly describe pricing for your product or service. How does this compare to competitors, assuming competitors are at or near break-even point with their pricing? Analyze pricing alternatives and make recommendations about pricing going forward based on the following:

• How sensitive are your customers to changes in price?
• What revenue do you need to break even and achieve profitability?

• What does the price say about your product in terms of value, quality, prestige, etc.?

Part 2: Respond to Classmates’ Posts

After you have created your own post, look over the discussion forum posts of your classmates and respond to at least two of them.

Part 3: Incorporate Feedback

Review the feedback you receive from classmates and your instructor. Use this feedback to revise and improve your work before submitting it as part of the “Complete Marketing Plan” assignment.

Answer 1

Part 1: Pricing Strategy

My product is an Educational Smart class solution consisted of a Hardware part (audio visual /streaming device for class rooms ) & software (curriculum  oriented content ) it is a completely immersive learning experience for students & helpful for teachers (having simpler GUI hence requiring less training time ) my products strength lies in below given USPs

1 ) Use of proven /reliable hardware : My product uses proven & reliable AV streaming hardware hence provides greater acceptability in users ( requires very less end user/demonstrator training)

Due to use of proven technology & reliable hardware we are able to slash need trainer & demonstrator hence giving us an competitive edge in our pricing strategy .

• How sensitive are your customers to changes in price : since we are selling our products in a B To B ( Schools who are passing on this price to end users parents of students) hence price of services cannot be changed between semesters leaving very less flexibility in pricing .
• What revenue do you need to break even and achieve profitability? since the product is capital intensive at start after first year of commissioning we are flexible in terms of revenue required for break even.

• What does the price say about your product in terms of value, quality, prestige, etc.? Since it is a in B to B product its product quality which is of more concern in prestige rather than price however value for money is more important for our customers when choosing our product.

  Part 2: Respond to Classmates’ Posts

  After you have created your own post, look over the discussion forum posts of your classmates and respond to at least two of them.

• looking at the product description it is evident that in such B to B products , pricing should be competitive for initial commissioning of the product as the prestige & brand value will be decided only by end user hence prestige of product is not that much dependent on pricing in such cases .