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25/09/2020 Client: bingyanj Deadline: 24 Hours

 


TOPIC 1: Pricing Strategies (Required)


The readings suggest there are certain strategies for pricing new products, which is decidedly more difficult than adjusting prices to existing products. The new product pricing approaches are: 



  • Skimming 

  • Penetration 

  • Everyday low prices


The pricing approaches discussed for existing products are: 



  • Cost plus 

  • Markup 

  • Markdown 

  • Odd-even pricing 

  • Prestige pricing 

  • Price lining 

  • Demand backward pricing 

  • Leader pricing 

  • Sealed bid pricing 

  • Going-rate pricing 

  • Price bundling 

  • Captive pricing 

  • Product mix pricing 

  • Two-part pricing 

  • Promotional pricing


There is no shortage of pricing approaches, and as customers, we are exposed to all of them at some time or another in our purchasing processes.


Choose one of the pricing approaches and discuss the product, the pricing approach, and why you think it is the most appropriate approach for that particular product given your consumer characteristics. Be sure you understand the definition of your approach before tackling this topic. 


Many of you will be tempted to use promotional pricing since it is the easiest to demonstrate. So promotional pricing is not "for sale" (pun intended). Pick one of the other approaches for this topic. . Remember, there are no rights or wrongs in this topic. Each of us as consumers can view pricing differently.


 


TOPIC 2: Channel Systems


The Coca-Cola company has a very large and complex channel distribution system. Take a look at how the company describes its distribution system by clicking on this link.


Coca-Cola system. (n.d.). The Coca-Cola Company. http://www.coca-colacompany.com/our-company/the-coca-cola-system


Can you outline the indirect channel system based on the information on the website? You might want to refer to Figure 6.2 or Figure 6.3 in the main text to organize your thoughts. What value does each of the channel members provide to the end customer? What might you suggest they do differently?

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