Assignment 2: Pricing Strategies and Decisions
Due Week 10 and worth 245 points
You will use the same client and scenario for this assignment that you used for Assignment 1.
Develop a report about your client for your boss (three to five pages recommended) that includes the following components:
1. Pricing Strategy Management
a. Evaluate the pricing policies, processes, and methods your client uses to manage its pricing strategies.
i. Identify the policies used to manage the pricing strategy of the company.
ii. Describe the price-setting process the company uses and determine if prices are sustainable and profitable.
iii. Differentiate between incremental and avoidable costs and analyze contribution margin for your client’s three top-selling products.
iv. Explain why your client should or should not invest in a breakeven analysis.
2. Pricing Decisions
a. Determine the impact pricing decisions have on the overall marketing strategy of the company.
2. Discuss the challenges your client could face when implementing a new or updated pricing strategy.
2. Describe the strategies used by competitors and create solutions to react to their actions.
2. Determine the best method for managing competitive information and current trends in pricing.
2. Explain the importance of accurate measurement of price sensitivity of consumers.
0. Ethics and the Law
0. Identify any potential ethical and legal implications related to pricing.
1. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other similar websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
· Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
1. Examine the key pricing considerations and strategies relative to the product life cycle.
a. Analyze ethical and legal issues related to pricing.
0. Evaluate the policies, processes, and methods used to develop and manage the pricing strategy of a company.
0. Examine pricing policies used for various purposes, including: price objections, price increases, economic downturn, and promotional pricing strategies.
0. Analyze the price-setting process used to establish sustainable and profitable prices.
0. Differentiate between incremental and avoidable costs and analyze contribution margin.
0. Examine breakeven analysis and outline approaches to determine profitability.
1. Determine the impact pricing decisions have on the overall marketing strategy of a company.
1. Examine the challenges of effectively implementing pricing strategy into an organization.
1. Assess the strategies used by competitors and create solutions to react to their actions.
1. Determine the best method for managing competitive information and current trends in pricing.
1. Assess the importance of accurate measurement of price sensitivity of consumers.