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Activity 4 Business Marketing-Pricing Strategy

The document discusses various topics relating to business marketing and pricing strategies. It covers the factors involved in determining pricing, such as costs, competition and customer perceptions. It also addresses pricing objectives, strategies, methods and policies. Additionally, the document examines case studies on supply chain management and factors for establishing marketing control systems. Overall, the document provides an overview of important concepts for setting prices and evaluating marketing performance in business.

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Charmis Tubil
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390 views4 pages

Activity 4 Business Marketing-Pricing Strategy

The document discusses various topics relating to business marketing and pricing strategies. It covers the factors involved in determining pricing, such as costs, competition and customer perceptions. It also addresses pricing objectives, strategies, methods and policies. Additionally, the document examines case studies on supply chain management and factors for establishing marketing control systems. Overall, the document provides an overview of important concepts for setting prices and evaluating marketing performance in business.

Uploaded by

Charmis Tubil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Subject: Business Marketing

Lesson 6: Activity

1. Describe the “magic of price” as it is explained in the text.


 The magic price refers to the proper pricing of products while considering the demand curve of the
product.
2. List the factors in the pricing process.
 The Magic of Price
 Pricing Objectives
 Pricing Strategy
 Determining Demand – Customer Perceptions of Price
 Customer Perceptions of Cost and Benefits
 Price Sensitivity
 Cost
 Competition
 Pricing Methods
 Pricing Policies
 Transfer Policies
 Determining Prices for Products and Product Lines
 Financing Foreign Trade
 Effects of the Internet
3. What are the three major types of pricing objectives firms may use?
 Profit-oriented
 Sales-oriented
 Status quo-oriented
4. In developing a pricing strategy, what factors should a manager consider?
 Firm
 Environment
 Distribution Channels
 Competitors
 Customers
5. How does the customer perceive costs and benefits in weighing whether a price seems fair?
 The customer looks into the reliability and durability of the product. If the cost justifies how good
the product is plus its benefits, the customer then decides whether the product’s price seems fair
for the product.
6. How can a firm use value-in-use and solutions marketing in developing pricing?
 A firm can use value-in-use to produce the best price from a quality product to fit to the customer’s
budget and can use solutions marketing in justifying how useful the product is to furthermore
persuade the customer that the product indeed is reliable and durable.

7. What affects a customer’s price sensitivity?


 Customer Economics
 Search and Usage
 Competition
8. Explain the concept of switching cost.
 The concept of switching cost is mainly about maintaining loyal customer base therefore
businesses make high switching barriers to make it hard for customers to switch.
9. How can a manager develop accurate costs to be used in his pricing decision?
 A manager must keep track of all the cost records of the company and use it for reference so that
he develop accurate costs that will be used in his pricing decisions.
10. How can transfer pricing affect the results realized by local partners?
 The results realized by local partners might not be as reliable and durable as before due to their
demotivated spirit from the reduce profit. In simple words, transfer pricing might affect he results
realized by local partners in a negative way.

Lesson 7: Case Study

1. How does the relationship with Nestlé help Nestlé’s supply chain management?
 The relationship with Nestlé help them properly manage their flow of goods and other products. It
help them maximize customer value and gain a competitive advantage in the marketplace.

2. How has Stobart moved from being a haulage company to being a logistics company?
 When Eddie Stobart Limited launched London stock exchange and became independent the
company had owned some logistics company and also due to their collaboration with Nestlé as
they distributes 75 percent of Nestlé’s products throughout the UK and Ireland.

3. What is the purpose of owning ports and airports?


 The purpose of owning ports and airports is to provide the company a larger place to move on to
keep it from developing further.

4. What advantages might a customer see in dealing with a family business?


 A family business often have visions and goals that are long term, with this the advantages that a
customer might see is that the reliability and durability of the product or services that a family
business he is enjoying hardly varies will put him to ease and will make him enjoy the product or
service for a long time. Granting that the product or service is great and really satisfies the needs of
the customer.

5. Why might Stobart have sought a joint venture with Nestlé?


 Nestlé is a Swiss multinational food and drink processing conglomerate corporation headquartered
in Vevey, Vaud, Switzerland. It is the largest food company in the world, measured by revenue and
other metrics, since 2014. Given this, Stobart might have thought that this company will be needing
a capable and competitive logistics company and thought that his company best fits to being that
logistics company who will join Nestlé in success.

Lesson 8: Activity

1. What are the main differences between key-account selling and small-account selling?
 Key-account selling focuses on the business and the customer they’re selling to while on small-
account selling concentrates on managing sales team activities and do not involved themselves
directly on customers except when major problems arises.

2. Which remuneration system would you expect to be more highly-motivating: a commission-only


system, or a straight-salary system?
 A commission only system will be more highly-motivating because when a commissioner had
reached her standard quota he will be free to stop for a while and be on a holiday since no one is
obliging her to work while a straight-salary system, this might sound good but the thought of
working every day to justify your pay might be a little frustrating.

3. Why is conflict often a good thing?


 It is often a good thing in an organization because it encourages open-mindedness and challenges
the organization to effectively manage conflict so that it can serve as a catalyst, rather than a
hindrance in an organisation’s improvement and development.

4. Why do salespeople tend to identify with customers more than with the firms they work for?
 The role of the salespeople is to create value of their firm’s customer therefore, they tend to
identify with customers more than the firms they work for.

5. Why are after-sales activities often neglected?


 After-sales activities are often neglected because they usually pride themselves on continuous
customer engagement.

Lesson 9: Activity

1. What are the factors which would determine the frequency of marketing audits?
 The amount of time that can be spared from actually carrying out marketing tasks.
 The cost of carrying out the audit, in both man-hours and resources generally.
 The nature of the market. In a volatile market, the audit may need to be carried out more
frequently than would be the case in a stable, mature market.
 The nature of the corporate objectives. Some objectives need constant monitoring, and also some
objectives impact greatly on other parts of the marketing effort.

2. What are the major approaches to establishing control systems?


 Taking corrective actions
 Comparing performance with standards
 Measuring actual performance
 Establishing standards to measure performance

3. Why is brand evaluation difficult?


 Brand evaluation is difficult because the company’s brand will become the face of the company.
Brand is important for a company because it helps the company to be successful as it slowly
becomes known to the market. Making your current state a desired state.

4. What are the differences between tame problems and wicked problems?
 A tame problem has a definitive solution and also may be solvable through lessons learned
solving a previous and similar problem. It is one that can be solved by choosing and applying
the correct algorithm. While a wicked problem, is a social or cultural issue or concern that is
difficult to explain and inherently impossible to solve or is one for which there is no known
algorithm to solve it.

5. How would you classify employees: as tangible resources, or as intangible resources?


 Employees are intangible assets since they are setting skills and abilities that the company is
referring to as assets, and since skills and abilities can’t be touched it is considered to be an
intangible asset.

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