Advertising and Pricing Strategies
Having read this week's Learning Resources, you are now well aware that advertising objectives determine the types of advertising selected to promote a product and that certain types of advertisements work best in particular stages of the product adoption process. Think about the different kinds of advertisements you have seen and consider the purpose behind the creation of these ads. In other words, what is the message the ad is trying to relate and why?
Brands make purchasing decisions easier, and creating a successful brand can go a long way toward the successful introduction of new products under the successful brand banner. Think about the pricing strategies that are applied to various products that you buy, especially new product offerings of successful brands.
To prepare:
• Review Chapters 15-17 in your course text.
Response to the following:
• Identify one of your favorite ads and describe the message (value proposition), medium, and language used. How does this relate to target segments?
• Choose a product that you or someone you know has purchased recently. What pricing strategy (e.g., introductory pricing, price skimming, market penetration) was used in pricing this product? On what basis was the decision to purchase made? What kind of research was done before a decision was made? What do you think the company's objective was in making its pricing decision?
Be sure to support your work with specific citations from the Learning Resources and any additional sources.
Note: Independent research is required for this Discussion.
Read a selection of your colleagues' postings.
Respond by Day 6 to at least two colleagues in one or more of the following ways:
• Ask a clarifying question about your colleague's post.
• Make a suggestion that expands upon your colleague's post.
• Share an experience or insight related to your colleague's post.
Readings
• Perreault, W. D., Jr., Cannon, J. P., & McCarthy, E. J. (2014). Basic marketing: A marketing strategy planning approach (19th ed.). New York, NY: McGraw-Hill/Irwin.
o Chapter 15, "Advertising, Publicity, and Sales Promotion" (pp. 384-417)
o Chapter 16, "Pricing Objectives and Policies" (pp. 418-445)
o Chapter 17, "Price Setting in the Business World" (pp. 446-473)
• Calculator Web. (2014). Marketing calculator. Retrieved fromhttp://www.calculatorweb.com/calculators/marketingcalc.shtml
• For Dummies. (n.d.). Calculating cost of goods sold and inventory cost. Retrieved July 23, 2014, fromhttp://www.dummies.com/how-to/content/calculating-cost-of-goods-sold-and-inventory-cost.html
• Queensland Government. (2014). Pricing calculators. Retrieved from
http://www.business.qld.gov.au/business/running/marketing/pricing-products-services/working-out-prices
• Swiftutors.com. (n.d.). Cost of goods sold calculator. Retrieved July 23, 2014, fromhttp://calculator.swiftutors.com/cost-of-goods-sold-calculator.html